RIM shakeup coming, co-CEOs will likely relinquish co-directorships
As the company’s stock and market share has dropped, pressure has steadily grown on RIM to bring greater independent control to their board to provide a check on Lazardis and Balsillie. Balsillie and Lazardis, two of the three largest RIM stock owners, have long resisted this move, but this summer an independent group of shareholders lead by Northwest & Ethical Investments LP threatened to bring RIM’s management hierarchy up for a vote; to avoid a public showdown the board agreed to a 6 month study of the problem.
It was initially thought that the maneuver would lead to little substantive change, but RIM’s BlackBerry 7 handsets have not reversed the company's market share drops, and their next generation BB10 handsets have been delayed until the second half of 2012. RIM has promised a big marketing push to “reinvigorate the BlackBerry name”, but with lackluster products on the market and no refresh in site, it appears that the pressure will be enough to force a move to create broader independence on RIM’s board.
source Financial Post via BGR
1. kshell1 (Posts: 1143; Member since: 05 Oct 2011)
RIM over the last few years has turned from good to the worst smartphone makers and OS makers. it would take more than they could possibly muster to get them back even remotely close to the top. RIM is turning into the new Palm
2. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
This is just rearranging the deck chairs on the Titanic. The problem is with the co-Bozos running the company.
4. snowgator (Posts: 3504; Member since: 19 Jan 2011)
That's a funny and really great analogy, Doug!!!! ;-D
9. JeffdaBeat (unregistered)
As much as I am inclined to agree with you, remember Apple was in a familiar position a little over a decade ago. RIM has needed to change up their execs and talents years ago, but they rested on their name instead. Had Apple done that, they would have fallen too. RIM needs drastic change and it looks like that might happen...so...I hate to say this...but don't count them out just yet.
11. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)
exactly.. rim could follow a path very similar to apple, but they really need a whole new managment team (ie a leader like steve jobs) to help them get back on track… without that the will eventually be bought or simply go bankrupt.. but the ceos could possibly be hoping for a buyout if they own that much of the company--another reason for change
3. snowgator (Posts: 3504; Member since: 19 Jan 2011)
The first two posts from kshell and droid_X_Doug nailed it. I really believe mobile moves too fast and development requires too much cash flow for RIM to catch up to the rest of the competition trying to develop both hardware and software. I think Blackberry could be a great hardware developer and still lay claim to the best options for professionals everywhere. Just cannot do it all. These stubborn CEO's are killing an iconic company.
8. remixfa (Posts: 14255; Member since: 19 Dec 2008)
dont confuse sliding market share with no cash. Rim has billions in cashflow it could use to reinvent itself. The biggest problem with rim has always been its ego about itself and those 2 morons in charge.
Companies that quickly rise to the top and have a dedicated following tend to think they can keep putting out the same crap with minor updates every year and peeps will just keep buying it.... and for a while they will be right. But eventually all companies like that find themselves far behind and with spiraling market share because of it. Rim, palm, Ms, and apple all share that same problem and except for apple (so far) all has fallen from grace.
5. c.hack (Posts: 595; Member since: 09 Dec 2009)
About the only thing Droid and iPhone fanboys agree on is that RIM is getting flushed down the toilet.
6. PhoneCritic (Posts: 510; Member since: 05 Oct 2011)
To bad But I have to say that this is a direct result of management it goes to show when your on top you can never rest on your heels you have to keep moving. This is the same thing that Microsoft & Intel are going through right now and this serves as a warning for both Google and Apple ( more importantly Apple which is IMO acting like a school yard Bully right now I hope Tim Cook begins to reing in the cut throat lawyers and concentrate on Innovation instead of the petty law suits that his predecessor was so grossly involved with).
7. Slammer (Posts: 1498; Member since: 03 Jun 2010)
This move is long overdue. It amazes me that they remained in active duty this long.
RIM will now have to re-invent themselves. Not an easy task with Apple and Android sweeping the market.
10. Lwazi_N (Posts: 205; Member since: 23 Jun 2011)
It is about damn time these two stepped down. They should have done so 5 years ago, before things got bad. They should know hiring a CEO is never a bad move but they clung onto power and love RIM to a literal death. Sad.
12. minzhu001 (Posts: 5; Member since: 16 Nov 2011)
Don't blame CEO, they want RIM win.
RIM has strange culture and self distruct political environment.
In RIM if a new hired person figure out major problem and introduce efficient approach, both manager and his buddy group member will proof their wrong approach works. just like someone point out driving a car is right way, pushing a car is wrong way, then both manager and his buddy group member will hate you, and proof that 3 person can also move the car by pushing it. cheating email will be sent to some vice president, saying like: see, the car moving, pushing a car is a natural part of the process, in order to deny new hired contribution of introducing skill of drive a car, they have to deny merit of driving a car.
It is very strange company culture and strange company political environment, it promote stealing and cheating skill. RIM’s management may be a typical instance in MBA course.
This culture deny or steal hardworking team members’ contribution/innovation, generate strange political environment, destroy RIM.
So don't blame CEO, some of their VPs and VPs' expert generate terrible culture and self destruct political environment.