BlackBerry interim CEO Chen gets $85 million of restricted stock and $1 million base salary

BlackBerry interim CEO Chen gets $85 million of restricted stock and $1 million base salary
On Monday, Fairfax Financial pulled out of its $9 a share purchase of BlackBerry. The company's largest shareholder not only couldn't find financing for its bid, it also felt that this was not the time to invest in an LBO. The deal was scrapped and instead, Fairfax said that it would lead a $1 billion investment in the beleaguered manufacturer. BlackBerry will sell convertible debt, and Fairfax itself will take down $250 million of the paper.

On Thursday, the Wall Street Journal listed the names of the other investors in the Canadian company, as listed in a regulatory filing made by Fairfax. For example, Ontario-based Canso Investment Counsel Ltd bought the biggest slice of the debt, $300 million. Other names in the group include Toronto firms Mackenzie Financial Corp. and Brookfield Asset Management Inc. Other investors include Markel Corp.out of Virginia, and Qatar Holding LLC.

After it was revealed that now departed CEO Thorston Heins is in line to pull the rip cord on a $22 million Golden Parachute, both BlackBerry and Heins received criticism for appearing to reward the executive's failure to turn the company around. The filing by Fairfax revealed the compensation package given to interim CEO John Chen. Chen gets a base salary of $1 million and could receive an additional $2 million in bonuses based on whether the company reaches certain performance based goals. Chen also will receive 13 million restricted shares of BlackBerry. Of course, these shares will have to vest over time. At Thursday's closing price, the shares have a value of nearly $85 million dollars.

Chen will be given a car and a driver and won't be required to move more than 50 miles from his home in California even though the company is headquartered in Waterloo, Ontario.

source: WSJ via AllThingsD

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13 Comments

1. alpinejason

Posts: 262; Member since: Sep 06, 2011

I've. Said it once and I'll say it again they get paid to fail

2. xtroid2k

Posts: 601; Member since: Jan 11, 2010

Well I would say this sounds reasonable. I mean you can't bring in top brass and pay peanuts. This is far better then heins agreement.

3. bananana

Posts: 34; Member since: Oct 27, 2013

Let's see if an asian could turn things around

4. InspectorGadget80 unregistered

CEO's shouldn't get a bonus

9. kanagadeepan

Posts: 1272; Member since: Jan 24, 2012

Yes, especially if they can't steer the company towards profit...

5. cripton805

Posts: 1485; Member since: Mar 18, 2012

Buy some eyebrows and some eyelashes bruh...

6. remtothemax

Posts: 260; Member since: May 02, 2012

what could any single person do to deserve $85 million? this is insane. this is like feudalism all over again.

7. Shatter

Posts: 2036; Member since: May 29, 2013

The article clearly states he had 13 million in stocks and it grew to 85 million.

8. jjnbbills12

Posts: 18; Member since: Dec 30, 2011

13 million restricted shares

10. AfterShock

Posts: 4147; Member since: Nov 02, 2012

As a common man to see bonuses like that makes me angry inside. Let them prove their worth first like jobs that make world actually go around and not by a promise.

13. Jommick

Posts: 221; Member since: Sep 10, 2013

The point of a performance bonus is to be paid if and when you perform. Besides the point though, why would you want to work a job anyway? It's a terrible way of making money.

11. jmonteiro829

Posts: 265; Member since: Feb 13, 2012

We are failing as a company.... Let's blow more money!

12. MelvinPainter

Posts: 75; Member since: Apr 05, 2012

Why not pay the big bucks AFTER he has made a turn-around.

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