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RIM CEOs resign in surprise step, Heins takes over

updated 10:00 pm EST, Sun January 22, 2012

RIM CEOs quit unexpectedly

In a surprise step, RIM confirmed late Sunday that its two CEOs Jim Balsillie and Mike Lazaridis would resign from their top positions. The two would stay on as board members and shareholders for the BlackBerry designer, they told the Wall Street Journal early, but would hand over direct leadership to one person, current COO Thorsten Heins. Board member Barbara Stymiest would be promoted to an independent board chairman.

There would be "continuity" from the earlier strategy, Heins said, but it was "not going to be a standstill" that preserves the existing order. He was confident that BlackBerry 10 would lure customers and developers to RIM, but hinted that licensing the OS on a "case-by-case basis" might be an option if the software is successful.

A new board member, Fairfax Financial Holdings CEO Prem Watsa, was coming in to further shake up the board.

Balsillie and Lazaridis cast their partial exits as voluntary, but also in the wake of an imminent panel decision that suggested the board changes. Balsillie claimed that the jump would have good timing now that BlackBerry PlayBook 2.0 and the first BlackBerry 10 phone were both on schedule.

While portrayed as voluntary, the shift would come after what many consider RIM's worst relative year of performance on record. The company bled market share for the core BlackBerry smartphone line virtually every quarter, and its belief that the BlackBerry PlayBook would take on Apple quickly fizzled as it had to ship fewer and fewer tablets and cut the price of the PlayBook by as much as 60 percent just clear stock. The company repeatedly gave overly optimistic guidance for most of 2011 and was regularly confident in imminent turnarounds that didn't materialize.

The co-CEO structure was widely criticized, both for being very unusual in the industry but also for a self-reinforcing structure that made it harder to challenge their opinions. Their joint leadership of the board of directors also made it doubtful that other board members would significantly challenge their authority. Many credit the late responses to the iPhone and Android to a disbelief they could be outdesigned and a reluctance to respond directly.

Heins, meanwhile, came to RIM in 2007 from the CTO role at Siemens. While some of RIM's troubles came under his watch, he has shown signs of improvement by cutting down the lag between announcement and shipping for BlackBerry phones from months to weeks.





By Electronista Staff
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Comments

  1. ElectroTech

    Junior Member

    Joined: Nov 2008

    +17

    But they were the best thing for Apple

    I am sorry to see them go. Hopefully Balmer stays with Microsoft 'as long as it takes.'

  1. Jubeikiwagami

    Fresh-Faced Recruit

    Joined: Dec 2011

    +10

    Bring them back!

    They were doing an excellent job!

  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    +9

    Probably went like this

    RIM Board: "You guys need to leave. Now."
    Co-CEOs: "What if we don't' want to leave?"
    RIM Board: "Then we're gonna make it look like an accident."

  1. pairof9s

    Mac Enthusiast

    Joined: Jan 2008

    +7

    Rats off the sinking ship

    And I'll bet they got millions in severance for doing such a lousy job.

    /

  1. BlueGonzo

    Fresh-Faced Recruit

    Joined: Dec 2010

    +5

    Sorry Mr. Heins

    Sorry Mr. Heins but this is pure marketing bulls*** what you are talking about.
    You are talking about Innovations? What innovations (since 2007)?
    And if there is a chance that you are the right, there are still two monkeys (exCEO's) on the board of directors. And the two are still involved in product "innovations".

    Sorry but this does not work.

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