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Palm paying execs $250K incentives to stay onboard [U]

updated 07:45 pm EDT, Fri April 16, 2010

SEC filing shows Palm paying extra to keep staff

(Updated with more transactions) A new SEC filing this week showed that Palm is paying executives direct cash incentives to keep them onboard. Several executives, including Global Operations Senior VP Jeff Devine and CFO Doug Jeffries, are being paid $250,000 bonuses and given stock options to stay on for at least two years as part of a "retention program" to keep them working. The payouts follow word that Software and Services Senior VP is resigning and will leave the company April 23rd.

Most of Palm's current executives were veterans of the company since before Jon Rubinstein joined the company in 2007. The now CEO has nonetheless restructured a significant portion of the staffing to shake up its development, sometimes including fellow former Apple workers.

Palm hasn't usually had an issue with voluntary executive departures since Rubinstein signed onboard. The smartphone pioneer's extremely poor fourth quarter, however, has led analysts to call into question Palm's ability to survive and possibly a crisis within the firm itself. Multiple rumors have circulated that the company is both shopping itself to buyers like HTC or Huawei and considering licensing webOS as alternatives to going alone with its dropping smartphone business. [via Engadget]

Update: more shares have been given out to virtually all of Palm's executive staff, suggesting either that the company is determined to keep all its senior officials during the crisis or else that the company may have found a likely buyer and is providing motivation to remain after the takeover.



By Electronista Staff
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  1. Herod

    Fresh-Faced Recruit

    Joined: Jun 2007

    +4

    ha

    is this what they call "throwing money at a problem"?

  1. Tofino

    Fresh-Faced Recruit

    Joined: Apr 2005

    +3

    stock options?

    is that really going to help?

  1. Paul Huang

    Mac Enthusiast

    Joined: Sep 1999

    +3

    Palm may want to steal a line from Michael Dell

    Close shop, turn assets into cash, and send the checks to the share holders.

  1. rvhernandez

    Fresh-Faced Recruit

    Joined: Apr 2005

    +4

    Dear Jon,

    Maybe you should have tried an iPhone before you stuck your foot in your mouth. Palm is done. Why would anyone bother with buying Palm when Android is "free"?

  1. GopherAlex

    Fresh-Faced Recruit

    Joined: Jun 2006

    +4

    R.I.P. Palm

    That's what you get for killing BeOS...

  1. chas_m

    Joined:

    +2

    Sad day

    Adobe should be paying close attention to what happens when you "f" with Apple, but having said that I'll be very sad when Palm finally closes up. I have a lot of happy memories of Palm and I had hoped that a genius like Rubinstein would turn it around. He's made some good moves but it appears to be too little too late.

    Still, this is where Apple was in early 1998, maybe history can repeat itself.

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    +3

    Palm killed itself. Apple had nothing to do with

    Palm's attitude was lackadaisical as far as updating the Palm OS and they had practically alienated their fan-base over the past few years. I think Palm's employees should really take their money and go elsewhere. Unless some company buys Palm, the company is done for. There's too much competition to get back on its feet by itself. I hope that consumers that bought the Palm Pre less than a year ago will have a company to honor their warranties. For those that were touting the advantages of Palm's webOS when buying the Pre, they would have been better off concerning themselves about the financial condition of the company.

    No one should be rejoicing the death of Palm because a lot of lower-paid employees are going to suffer job losses. Nice strategy. Keep the execs happy and fire the drones.

  1. Zigster

    Fresh-Faced Recruit

    Joined: Sep 2001

    +1

    Palm blew through all that IPO money

    they got at the height of the boom. Palm could have gone in any number of interesting directions, and not just cellphones. For several years their only competition in mobile devices was Windows CE, which sucked in its own right, but was unable to innovate in any meaningful way. Now Apple is stealing a market in mobile enterprise devices they had no intention of entering. Palm is even worse than Quark in this respect - losing a market to disinterested rivals.

  1. MacShack

    Fresh-Faced Recruit

    Joined: Sep 2009

    0

    Adobe will kill flash too

    If one does not adopt to new developments and standards in the market one might end up playing catch up or dropping the entire market. If Sony and Nintendo are not careful they too will find themselves in a very uncomfortable position. Same goes for Nokia and RIM. It seems that when you are a good hard- en software company one can conquer a lot of market.

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