1. rdgroulx's Avatar
    Stumbled upon this Reuter article:

    "Months before Fairfax Financial Holdings Inc bid $4.7 billion for BlackBerry Ltd, Fairfax boss Prem Watsa played a role in securing a golden parachute worth as much as $55 million for the smartphone maker's chief executive, according to company filings.

    Watsa, Fairfax's chief executive, joined BlackBerry's board in January 2012 and was one of three directors charged in March with reviewing the compensation of the Canadian company's chief executive, Thorsten Heins."


    So Jim and Mike dropped their salary to 1$/year when things started going sour, kinda showing empathy. But then Reuter explains

    "Heins' compensation has increased from $1.9 million in fiscal 2011, when he was chief operating officer, to $10.3 million in fiscal 2012 when he was appointed CEO, before slipping back slightly to $9.1 million in fiscal 2013, which ended on March 2 this year.

    Since Heins took over, BlackBerry shares have fallen more than 50 percent as the company delayed the release of its first BlackBerry 10 devices and they then failed to excite sales.

    In May, Heins signed a new contract that raised his base salary to $1.5 million from $1 million; bumped his maximum incentive bonus to 150 percent of salary from 125 percent and granted him more than $34 million in front-loaded equity awards that vest over three years."


    So if I read this right:
    - In 2012 got 5x the base of 2011
    - Bonus went up 25%
    - If he gets terminated he gets 3 M$ + 4.5M$ incentive + 48 M$ in equity
    - Special achievement bonus 3M$ for not spending money (...on marketing...?)

    "The board said the higher payouts were justified to retain Heins and ensure his interests are aligned with those of shareholders, and to reward the executive for leading BlackBerry through a period of massive upheaval."

    Guys....call me a communist but that's a whole lot of millions. I'm a financial controller in a company I love and I like the people i work with, I love the product and we love what we do. I know I'd make more somewhere else but I'm not whoring out just for a few thousands.

    Now looking at the above, am I wrong to say that
    1) If TH needed that many millions to be retained and have his interests aligned with the shareholders...did he give a **** about BB? I mean... A CEO aligning with the interests of the shareholders????? Really?? Geeesh that's unheard of, bring in the millions.

    2) If Prem really was part of a tiny trio to boost TH's bonuses, am I really doing conspiracy theory when I say that he had TH in his pocket from the onset?

    3) Looking back at the events and timing, the lameduck Z30 lauch drowned in a huge write-off, add 4500 layoff announcement, fail the BBM launc...and I'm just looking 1 month back... doesn't it REALLY start to look like someone had a plan all along?
    potatoguy likes this.
    09-27-13 08:59 PM
  2. Lendo's Avatar
    I'm not sure you have to support Blackberry to be a Canadian Patriot.

    Edit: As far as what TH does or doesn't get from BB in an exit package that's between him and BB. That's Capitalism.
    09-27-13 09:01 PM
  3. amazinglygraceless's Avatar
    09-27-13 09:06 PM
  4. nuldahtal's Avatar
    That 48m in equity is actually call options based on March stock price to be vested in the next 3 years, or, as this is customary, right away in case of takeover. We will have to see in the financials for the details, but I'm quite sure these options are worthless currently as the stock dropped that much since then.

    Im sure the guy really tried his very best, but you can't beat 2 major American companies. BlackBerry was going nowhere when he got appointed. Give the guy some credit.
    09-27-13 09:09 PM
  5. h20work's Avatar
    @ OP, you only buy Canadian products?

    If I followed your logic I wouldn't be using a Z10.

    Raising his compensation was a stupid move in my opinion. Especially considering how Prem is supposed to be the white knight to save bbry.

    Don't mix patriotism with brand loyalty, it never works. Ask anyone who owned an American motors or British Leland product.
    amazinglygraceless likes this.
    09-27-13 09:21 PM
  6. eddy_berry's Avatar
    I support BlackBerry not because I'm Canadian. I support BlackBerry because I support Canadians like many hard working folks in Waterloo. I'm one to believe that CEOs are always the same. But considering he is almost literally the face of BlackBerry (and who really wants to be in that position) it was never going to be easy for him. That is why the incentives were there. Like Lendo said this is capitalism anyway.
    09-27-13 09:31 PM
  7. raggdoll's Avatar
    Wasn't able to completely follow that novel of a post, but I wouldn't support an inept company like BB just cause they are Canadian
    h20work likes this.
    09-27-13 09:36 PM
  8. h20work's Avatar
    I support BlackBerry not because I'm Canadian. I support BlackBerry because I support Canadians like many hard working folks in Waterloo. I'm one to believe that CEOs are always the same. But considering he is almost literally the face of BlackBerry (and who really wants to be in that position) it was never going to be easy for him. That is why the incentives were there. Like Lendo said this is capitalism anyway.
    I support bbry by buying their products for the last 10+ years. I'm an American. BlackBerry served my needs, that's why I supported them.

    I'm a patriot, and a vet, but if a US based company doesn't suit my needs I buy what does. Hell, the last American car I bought was in 1990 unless you count my Titan which was made here.
    Bsbudd and amazinglygraceless like this.
    09-27-13 09:50 PM
  9. Aljean Thein's Avatar
    Didn't know he was getting paid in the 7 figures...

    Posted via CB10
    09-27-13 11:53 PM
  10. h20work's Avatar
    Didn't know he was getting paid in the 7 figures...

    Posted via CB10
    The board revised his contract in may.
    09-28-13 12:03 AM
  11. djdragon's Avatar
    Soooooo TH got all his money already? He's been paid out and gone?

    Posted via CB10
    09-28-13 12:59 AM
  12. h20work's Avatar
    Soooooo TH got all his money already? He's been paid out and gone?

    Posted via CB10
    No, that part of his contract is if the company does get sold and he gets replaced. The $55m was based on the stock price in March, so it will likely be much lower.
    09-28-13 11:07 AM
  13. Cashgap's Avatar
    TH apparently had the option of going elsewhere for big bucks.

    "Elsewhere" would not have had to mean Samsung, Nokia, Microsoft, Apple.

    It could have been Bayer, ABB, etc. etc. etc. etc.

    The point is, the guy had options as BB COO, and would have even MORE offers once he was BB CEO. You set the pay plan so that he doesn't have to worry about fielding offers, you are paying him to not even take a phone call from Larry Ellison when Ellison wants to talk to him about a position at Oracle.

    In hindsight, BB could likely have performed as well with the position vacant. But at the time, it appeared that it was worth millions to assure TH for a period of time.
    09-28-13 11:32 AM

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