Amid the earlier buyout rumors, it was discovered that if BlackBerry were to be purchased, the company’s Chief Executive Officer, Thorsten Heins, stood to make $55.6 million.
The figure, which includes salary, incentive payments and equity awards, comes from the May proxy filing and is based on BlackBerry’s stock price at the end of the fiscal fourth quarter.
However, that scenario hasn’t played out. With the announcement of the $1-billion financing from a group led by Fairfax Financial Holdings, Thorsten Heins got the boot.
John Chen, former CEO of Sybase, an independent software vendor specializing in data management, analytics, and mobility technology, has been announced as BlackBerry’s interim CEO.
Quite disappointing for Heins, who seemed rather “laser focused” on the $55.6 million. Although, Heins will likely be saved by a $22 million golden parachute, calculates the Globe and Mail.
Heins might be eligible for up to $22 million in severance related to his abrupt departure. His payment may vary given that “much of what he has are Restricted Stock Units (RSUs) with only a few being eligible for immediate payout on termination. The other units will vest over a period of 24 months, so the final number could vary. Also, the amount was calculated for BlackBerry’s fiscal year ending last March and the stock is down over 50 percent since then,” says StreetInsider.
2.89 million RSUs, 813,000 stock options (which are currently not exercisable given the company’s share price), and 179,504 common shares were last disclosed by Heins. Additionally, there is 1.1 million performance share units which can be paid if various performance metrics are met, however those won’t continue to vest.
Golden parachutes are quite the common practice for C-level executives. Having been CEO for less than 2yrs, Thorsten Heins could soon expect a decent retirement. Adieu Thorsten!