Shero will report to Lamoriello, who will continue in his role as the team’s president.— New Jersey Devils (@NHLDevils) May 4, 2015
Lamoriello has said this is "100%" his decision, and he has been in charge of New Jersey since 1987, one of the longest stints in league history.
There's been no word if NJD will send Pittsburgh a 3rd round pick - which the Penguins could have insisted upon. However, per Mike Colligan, Shero + fired coach Dan Bylsma made a combined $5 million plus last year on Pittsburgh's dime to be unemployed, and that's an expense for the Pens that goes away with a new job. For them, simply removing the excess from the payroll is a solid reward. There's also the fact that not standing in the way of a former employee from getting a new job is a pretty admirable decision to make- even if Shero is joining a division rival.
UPDATE: Pens get no draft pick
Lamoriello says no compensation to PIT— Elliotte Friedman (@FriedgeHNIC) May 4, 2015
Speaking of, the Devils haven't made the playoffs in 3 straight seasons, and don't figure to have a very strong team for next season. With the Pens, Rangers, Capitals all with very solid teams - and up and comers like the Brooklyn Islanders and Columbus Blue Jackets having a ton of young talent as well, it's going to be very difficult for the Devils to compete for a playoff spot for the foreseeable future.
But, that's Shero's issue now and it will be interesting to see what he has learned about some of his mis-steps that ended his Penguins career.