Yep, some parachutes are still made of gold.
Research in Motion announced last week that it gave exiting co-CEOs Jim Balsillie and Mike Lazaridis were given a combined $12 million in exit payments after they stepped down from the role earlier this year. Of the $12 million, Balsillie took home $8 million while Lazaridis netted a still-cool $4 million on condition that he stay with the company. Lazaridis currently serves as vice chairman of the board.
Embedded in the filing was RIM’s reason for providing exit pay to the former leaders. The payment was meant as a kudos to the two men for “revolutioniz[ing] the worldwide wireless industry with the introduction of the BlackBerry and forever changed how the world communicates.” To be fair, the BlackBerry truly did usher in the smartphone era, and up until the last few years was the must-have gadget for the mobile businessman. The last year, which ultimately led to the resignation of Balsillie and Lazaridis was marked by drastic reductions in value for the Ontario smartphone maker; RIM’s shares are down nearly 75% from the previous year, hitting 7 year lows as the company continues to see its market share sink.
RIM’s future hopes rely on the BlackBerry 10 platform, RIM’s re-imagining of the smartphone operating system it’ll be releasing this fall in hopes of dethroning Apple’s iPhone and Google’s Android OS. That’s if the company makes it through the summer. RIM has hired JPMorgan and RBC Capital Markets to strategically review RIM’s business plan, which could lead to the sale of part or all of the company. If the company keeps throwing around money it doesn’t have, perhaps that move will come sooner than later.
[via The New York Times]