John Chen's fiscal 2015 compensation was down 96% (Spoiler Alert: he still made a fortune)

John Chen's fiscal 2015 compensation was down 96% (Spoiler Alert: he still made a fortune)
John Chen might have to make do with a diet of ramen noodles and crackers. BlackBerry's CEO took home $3.4 million during fiscal 2015, a sharp decline from the $85.8 million he pocketed the previous year. The 96% decline is somewhat misleading since most of Chen's 2014 compensation came from restricted stock that was awarded to him when he joined BlackBerry, and vests over five years.

Chen's actual salary in fiscal 2014 amounted to $1 million while in fiscal 2015, he received $1 million and $2.4 million in incentives. While BlackBerry has underperformed in the smartphone marketplace, the stock has outperformed both NASDAQ and the Toronto Stock Market where the shares are listed.

Over the weekend, talk surfaced once again that BlackBerry would be the target of an acquisition. This time, Microsoft is the rumored suitor, looking to pick up the Canadian manufacturer for $7 billion. That would represent a premium of 26% over the current price of the stock, which closed Friday at $10.48 a share.

Chen is a noted turn-around artist and was able to work his magic on software company Sybase, which was sold to SAP for $5.8 billion in 2010. Certainly the executive's end game is to sell BlackBerry for a large premium. The problem is that no one knows if the company has hit rock bottom. While Chen talks about turning around hardware and making it profitable again, the company's strength lately has been in software.

BlackBerry also announced a stock buyback last week. The company will buy as many as 12 million shares, or 2.6% of the company, over the next 12 months.

source: WSJ

FEATURED VIDEO

26 Comments

1. Crispin_Gatieza

Posts: 3137; Member since: Jan 23, 2014

Yep, the company's dying. So much so that they're going to do stock buyback. Of course by doing so, their P/E ratio looks better on their balance sheet and they're more attractive to prospective buyers. This is brilliant on Chen's part. If they do sell, they're going to go for top dollar and there's gonna be some rich mofos walking away from BlackBerry.

2. Rydsmith unregistered

Well the smart and rich people always walk away before the ship sinks....

8. Crispin_Gatieza

Posts: 3137; Member since: Jan 23, 2014

If it sinks it's because the new regime blew the bilges. Chen has made the company profitable again and deserves to get paid.

11. meanestgenius

Posts: 22098; Member since: May 28, 2014

Agreed. Chen has done a commendable job thus far and deserves to get paid.

14. Mxyzptlk unregistered

Yes I'll give Chen some credit. He made BlackBerry somewhat relevant again and saved it from nearly collapsing.

16. SitiNurbaya0

Posts: 153; Member since: May 22, 2015

But the article say that chen is turn around expert with selling the company for premium at the end. How can selling blackberry (the company) can be relevant? His not saving the company.

19. Crispin_Gatieza

Posts: 3137; Member since: Jan 23, 2014

So was Alan Mullaly but he didn't sell Ford. Some companies are worth saving, others are more valuable when they're scuttled. The trick is to know which, and that's why they brought in Chen. Get with the program.

21. SitiNurbaya0

Posts: 153; Member since: May 22, 2015

I think blackberry is not worth saved. In old time, they product is good but not best. But now, their product no good at all. They deserve to be gone, so people wonot waste time with bad nostalgia product.

22. meanestgenius

Posts: 22098; Member since: May 28, 2014

Have you ever used a BB10 handset before? If the answer is no, which I have a feeling it is, please delete your comment immediately as it shows that you are only speaking out of ignorance.

23. SitiNurbaya0

Posts: 153; Member since: May 22, 2015

I say this from my heart I from Indonesia I use BB and nokia a lot since i was small kid When I'm class 1 SMP (1 medium) most my friend is nokia or bb But now no bb and no nokia reason is bb not bad, but not good android good last few year, bb device is not good, canot compete bb not deserve to be save they have no clue they have no idea they no smart people bb have no special to be save

24. meanestgenius

Posts: 22098; Member since: May 28, 2014

Saying from the "heart" doesn't equate to talking from experience. I'll ask you again, in big letters, since it seems you didn't understand my previous question: HAVE YOU EVER USED A BLACKBERRY DEVICE RUNNING OS 10? If you haven't, then you're speaking from a point of IGNORANCE. Meaning, in laymen terms, that you have absolutely no idea what you're talking about BlackBerry 10 is TOTALLY DIFFERENT from BlackBerry OS7.x. When you can confirm that you've actually used BB10, then we will talk.

25. SitiNurbaya0

Posts: 153; Member since: May 22, 2015

YES!!! my dad work at oil company. he think he should wear blackberry because of he work because he read that working man use blackberry all my blackberry phone is he used phone. my recent blackberry phone is z3, classic and passport. all was he phone. he always like that buy new blackberry, use it 1 month-2month, give to my mom or me or my sister or my brother. then he back to his samsung phone. after not long, we will sell the blackberry at lot of lost money. sad momment. i just got note 4 because my dad buy the new galaxy s6. this why i think blackberry not worth saving it just take away my dad money, and no good device (anymore) if bb dead/bankrupt it's better. my dad will buy no junk but buy more samsung/sony, we (me and brother and sister) will be happy.

26. meanestgenius

Posts: 22098; Member since: May 28, 2014

I find it highly unlikely that you have used a BlackBerry 10 device at all. If you did, you obviously didn't know what you were doing. Why would it be better if BlackBerry were dead? What do you get from BlackBerry dying? When you say things like that, you come off like a troll. I'm not an Android fan, but I don't go around saying Android/Google "would be better dead/bankrupt. Sony's mobile division is in the toilet, so if you think they're doing better off than BlackBerry, think again. Even Samsung isn't having the best of luck with Android lately. Also, if BlackBerry "isn't worth saving" as you say, then: 1) Why do so many entities want to buy BlackBerry? From Microsoft to Samsung to Apple to Lenovo to Xiaomi, the list goes on... 2) Why did Samsung go to BlackBerry to make its Knox enterprise offering actually meaningful in enterprise? 3) Why is Google using BlackBerry's software to help secure it's Android for Work offerings? 4) Why did Sony turn to legacy BBOS7 handsets for secure communications when they got hacked? It's obvious you don't know what you're talking about and are just trolling.

5. meanestgenius

Posts: 22098; Member since: May 28, 2014

Agreed. "Dying" companies don't initiate stock buybacks. Chen knows what he's doing.

3. SitiNurbaya0

Posts: 153; Member since: May 22, 2015

Why that man got so much money if blackberry not doing well. should he be punished or fired or bring to justice for doing wrong?

6. Crispin_Gatieza

Posts: 3137; Member since: Jan 23, 2014

Because (A) he was brought in to right the ship, (B) most of that salary consists of stock and (C) he has made BlackBerry profitable again. You don't know squat about how the business world works and you certainly didn't read the article.

4. meanestgenius

Posts: 22098; Member since: May 28, 2014

So PhoneArena ADMITS that the 96% decline is "a bit misleading", but runs with it anyway? Typical PA....

7. meanestgenius

Posts: 22098; Member since: May 28, 2014

At least they admitted it was misleading...smh...

17. Spedez

Posts: 542; Member since: Aug 29, 2014

And the chinaman laugh his way to the bank.

20. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

grrrrr

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.