BlackBerry CEO could make $55.6M by selling the company

BlackBerry CEO could make $55.6M by selling the company
Pop quiz: what is the reward for taking charge of a sinking ship and failing to keep it from going down? If you answered $55.6 million, you are correct. According to a proxy report filed in May, that's how much BlackBerry CEO Thorsten Heins stands to make if/when the company is sold and he is removed as CEO. And, the worst part of it is that it was the BlackBerry board of directors that are responsible for Heins' windfall.

Apparently, when Heins was offered the position of CEO, the BlackBerry board structured his contract in such a way that if the company is sold and Heins is removed from his position, Heins will be due $55.6 million in salary, incentive payments, and equity awards. This is based on BlackBerry’s stock price at the end of the fiscal fourth quarter, and the plan was approved by shareholders on July 9th. 

Given the troubled position of the company over the past few years, it's hard to understand why the board would structure Heins' deal like this. But, the BlackBerry board has made a series of bad decisions that have helped lead the company into the position it is in now, so maybe it's not that surprising. 

source: Bloomberg

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34 Comments

1. BillyBoy

Posts: 58; Member since: Jul 01, 2013

Just good business, as usual.

10. james004

Posts: 486; Member since: May 15, 2013

lol screw all the share holder to make pretty penny

2. Kevinphantom

Posts: 82; Member since: Jun 17, 2013

Bb soon ends

17. ShenAlJoker

Posts: 113; Member since: Jul 19, 2013

Nokia!!!!!!!!! buy bb!!!!!!! Just kidding ;-)

30. rms.max

Posts: 95; Member since: Sep 26, 2012

He wants that $55.6 million so badly.lol

3. JojoGo101

Posts: 211; Member since: Dec 17, 2012

Wow. Just wow.

4. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Only problem is no one wants to buy BB at the asking price. So, no windfall for ole Thorsten.

5. scsa852k

Posts: 331; Member since: Oct 16, 2012

What if he's fired by the board before BB is sold?

6. quadrazeus

Posts: 359; Member since: May 03, 2013

Interesting..

11. deewinc

Posts: 455; Member since: Feb 21, 2013

He still gets a FAT pay cheque :D

12. Glim12808

Posts: 394; Member since: Oct 26, 2011

Ah yes, the "Severance Pay" as it's called here in my country.

7. tedkord

Posts: 17463; Member since: Jun 17, 2009

That's the problem with big business that days. The CEO has no risk. Sink or swim, he gets his pot of Gold. You see guys run a profitable company into the ground, and get a golden parachute, while the low level employees get nothing. There is a refinery near me that closed. The hourly employees got one week severance for every year of service capped at sixteen weeks. The upper management that weren't given other jobs elsewhere got three weeks per yer capped at 60 weeks. So, the guys who drove the facility into the ground, so long as they had at least 7 years service, got more than guys who had 35 years.

14. Edmund

Posts: 656; Member since: Jul 13, 2012

That's why the liberals (or in your case republicans and conservatives) don't like unions. Try pulling that $hit in the health industry and see how far they get.

16. Googler

Posts: 813; Member since: Jun 10, 2013

Same problem with Wall Street, when CEO's demand their people get bonuses after they ran things into the ground, it's wrong no matter what approach you take to examine it. Bonuses and pay should be based upon quality work, not failures.

8. seret6

Posts: 279; Member since: Aug 14, 2013

dear rim or bb or whatever u like to call ur self join android and make bucks q10 or newer all qwerty in lime pie 5.0 and you may gain market share

26. axllebeer

Posts: 272; Member since: Apr 05, 2011

I doubt it. There are only a handful of OEMs actually making good $ on the Android platform. Although I have no problems with Android, I don't think another manufacturer using that OS is going to start making big bucks.

9. Chris_Bakke

Posts: 247; Member since: Jan 23, 2013

Why does that BB look so small in his hands? I mean it literally look miniature. Is it perspective or am I just not seeing it right?

13. Edmund

Posts: 656; Member since: Jul 13, 2012

The Q10 is actually quite pleasant to use.

15. Kishin

Posts: 706; Member since: May 30, 2013

Join windows or android make money faster fast and ur company can still be saved

18. xtroid2k

Posts: 601; Member since: Jan 11, 2010

I think this deal was made because who wants to take control of a sinking ship. Its like changing seats on the titanic. The board probably knew in advance the company was sinking and needed to provide incentive for somebody to put their good name on the line. I certainly wouldn't have taken such a job even if qualified with out a good incentive. who would want to hire a failed CEO. he looks like he's ready to retire anyway lol.

19. yyuu1000

Posts: 260; Member since: Jul 26, 2012

switch to andriod and get back on track

20. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Google should scoop bb and keep it alive. Diversify

21. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

And why on Earth would Google want to scoop BB?

23. xoxoGeorges

Posts: 209; Member since: Jul 11, 2013

Just like what they did with motorola: patents

29. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

The price that Google would be willing to pay for BB's patent portfolio is nowhere near what BB would be willing to sell them for. Google is better off waiting until BB is in BK and buy the patents for pennies on the $.

27. Googler

Posts: 813; Member since: Jun 10, 2013

Security protocols that BB is known for.

28. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

BB's security protocols (triple DES) have been eclipsed by AES256. Also, protocols are not patents. So, no exclusivity angle.

22. xoxoGeorges

Posts: 209; Member since: Jul 11, 2013

Yahoo is on a shopping spree and I wouldn't be surprised if it buys BB

25. eli577

Posts: 142; Member since: Jun 29, 2010

Yahoo is owned by Microsoft, so basically it would mean that MS bought RIM.

24. Antonyjoseph

Posts: 217; Member since: Apr 06, 2013

MS should buyout BB and start using the hardware facilities for making WP devices. Android is already too crowded and the ex-BB clients are likely to be happier with Windows OS.

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