• rim shareholdera are not happy (水城百事)

by 999, Wednesday, July 11, 2012, 06:44

One shareholder asked Heins about his pay package, which grew from $500,000 to $1 million when he became CEO, and has him in line for 8-12 million if he resigns or is let go. The shareholder wondered how much of a fight the compensation committee put up.

“You didn’t have any experience as CEO,” the shareholder said.

Heins shot back.

“I remind you that I led several billion-dollar divisions of Siemens. I haven’t had CEO experience in North America,” said Heins.

“We believe we did a good job . . . We’re still friends and we think it’s a fair package,” added board Chair Barbara Stymiest.

One shareholder blasted RIM’s board, saying none of them should still be acting as directors, saying the company’s current struggles have been years in the making.

“I’m extremely irritated . . . Why did they let it get out of hand so badly before they did anything about it?” asked the shareholder.

Earlier, the majority of shareholders didn’t seem to be in the mood to force matters. RIM’s entire slate of 10 board members was reelected, including John Richardson, whose future had been in doubt after a report from a proxy advisory firm criticized him.But Richardson had support withheld from voters representing 30.2 per cent of shares.

The annual general meeting got under way at 10 a.m. in front of a packed house at the Wilfrid Laurier University Recital Hall.

Chair Barbara Stymiest kicked off the meeting with a short speech, in which she acknowledged RIM’s less than stellar results.

“We understand the company’s performance this year has not met expectations,” Stymiest said.

Just before the meeting began, dozens of journalists gathered outside the hall, interviewing shareholders as they arrived.

Activist shareholder Vic Alboini was mobbed after arriving in a limousine.

Alboini blasted Heins, saying he’d lost credibility. He also said he’s proposing three new directors for RIM’s board, including Silicon Valley heavyweight Eric Begosian.

“The board members are nice people, but this isn’t about being nice, it’s business,” said Alboini, who also called for Heins to be replaced.

But once the meeting started, Alboini apparently backed off on a plan to propose three alternative directors, after asking Stymiest whether RIM needed more tech and consumer industry experience on its board.

“The board has a comprehensive set of skills,” said Stymiest, who acknowledged the company had used a search firm to help find new directors.

Heins was expected to face heated questions from investors over RIM’s dismal fiscal first quarter results, which included a $518 million loss, the delay of the long-awaited BB10 operating system until the first quarter of next year, as well as news the company’s cutting 5,000 employees. There are also sure to be questions over the company’s share price, which is down more than 90 per cent from its 2008 peak of $148.

Last week, Heins and other executives went on a public relations campaign, with mixed results. Heins was widely criticized for claiming “there is nothing wrong with this company as it currently exists.”

There have also been calls from some quarters — including Alboini — for a break-up or sale of the company.

Earlier this year, as part of a business update, Heins announced RIM had hired a pair of investment banks to help it explore strategic options, including licensing out its software, or looking for a partnership with another company. RIM has also previously said it’s looking to cut $1 billion in costs by next year.

RIM, which invented the smartphone market with its once-ubiquitous BlackBerry, could see its global market share sink below 5 per cent this year, some analysts believe.

Meanwhile, Bloomberg reports that RIM is looking to sell one of its two corporate jets as part of its cost-cutting drive.

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aornoe785 By: aornoe785
Jul 10, 2012 7:06 PM @gogogo You're right about being uneducated...RIM wasn't abandoned by either Balsillie or Lazaridis, although change at the top should have happened sooner. RIM has nothing to do with RIM Park. That's the city's quagmire. Oh, and unrelated to your comment, but Vic Albioni is an arrogant blowhard who should keep his mouth shut. Happy Shareholder's Meeting!
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gogogo By: gogogo
Jul 10, 2012 1:58 PM Blah I'm uneducated & have never worked for RIM but I do read up on what is happening A LOT. In my opinion RIM was damaged by its 'founding fathers' because those 'fathers' went to other families they care more about (eg: P.I and UofW). My question to THEM would be: Why start something you will just abandon later? And will you abandon your 'new families' if those get bad publicity too? AND what is up with RIM Park? How about renaming it 'Failed Park'....thanks RIM!
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gogogo By: gogogo
Jul 10, 2012 1:58 PM Blah I'm uneducated & have never worked for RIM but I do read up on what is happening A LOT. In my opinion RIM was damaged by its 'founding fathers' because those 'fathers' went to other families they care more about (eg: P.I and UofW). My question to THEM would be: Why start something you will just abandon later? And will you abandon your 'new families' if those get bad publicity too? AND what is up with RIM Park? How about renaming it 'Failed Park'....thanks RIM!
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ReallyExcel By: ReallyExcel
Jul 10, 2012 1:32 PM Public or Stay Private. If RIM would have stayed private and stayed focused on engineering and development of a good product instead of profits for the first while, they may not be in this situation they are in as of today. Heinz cannot be blamed for the previous years of Balsillie. He is dealing with what was handed to him, which is one big mess to try and clean up.
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thinktank By: thinktank
Jul 10, 2012 12:38 PM I find Mr. Heins has been very forthcoming and succinct. The public is unrealistic to think that he can fix years of ongoing issues in 6 months. I am looking forward to seeing what Q1 of FY2013 brings, once he's actually had a fair chance and we can start to see the results of the changes that he has implemented.
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Vibecho By: Vibecho
Jul 10, 2012 12:35 PM How to turn RIM around Find a small group of young, brilliant innovators who just dropped out of school because they couldn't fit in with the other students and set them up in a garage or cheap rental unit above a bagel shop. Here is where they will go against the grain of conventional thinking and will work unencumbered by bloated corporate culture and engineering paradigms. Something great will happen or at least they could start a band and have a good time. The moral of the story is that RIM has become exactly what it didn't want to become -Nortel!
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Henry Bülow Rasmussen By: mascon
Jul 10, 2012 12:28 PM RIM Delaying the the new operating system and completing layoffs of 5,000 by the end of next year does not bode well for a turn a round in their market.
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