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

Posted: , by Alan F.

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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

  • Options

posted on 07 Nov 2013, 20:30 6

1. alpinejason (Posts: 262; Member since: 06 Sep 2011)

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

posted on 07 Nov 2013, 20:34 1

2. xtroid2k (Posts: 534; Member since: 11 Jan 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.

posted on 07 Nov 2013, 20:59 4

3. bananana (Posts: 34; Member since: 27 Oct 2013)

Let's see if an asian could turn things around

posted on 07 Nov 2013, 21:40 5

4. InspectorGadget80 (unregistered)

CEO's shouldn't get a bonus

posted on 08 Nov 2013, 01:34 2

9. kanagadeepan (Posts: 981; Member since: 24 Jan 2012)

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

posted on 07 Nov 2013, 22:03 4

5. cripton805 (Posts: 1485; Member since: 18 Mar 2012)

Buy some eyebrows and some eyelashes bruh...

posted on 07 Nov 2013, 22:12 5

6. remtothemax (Posts: 260; Member since: 02 May 2012)

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

posted on 07 Nov 2013, 23:27 1

7. Shatter (Posts: 2036; Member since: 29 May 2013)

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

posted on 08 Nov 2013, 00:14 1

8. jjnbbills12 (Posts: 18; Member since: 30 Dec 2011)

13 million restricted shares

posted on 08 Nov 2013, 07:07 1

10. AfterShock (Posts: 3698; Member since: 02 Nov 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.

posted on 08 Nov 2013, 08:58 1

13. Jommick (Posts: 221; Member since: 10 Sep 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.

posted on 08 Nov 2013, 08:22 1

11. jmonteiro829 (Posts: 216; Member since: 13 Feb 2012)

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

posted on 08 Nov 2013, 08:42 1

12. MelvinPainter (Posts: 75; Member since: 05 Apr 2012)

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

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