BlackBerry Chief Executive Officer Thorsten Heins will make $55.6 million if he sells the company and removed from the position. He will receive the amount if the company has a change of control and the new owners want Heins out.
The amount includes salary, incentive payments, and equity awads. The figure is based on BlackBerry’s stock price at the end of its fiscal fourth quarter. The plan got the approval of the company’s shareholders during the company’s annual meeting held last July 9.
BlackBerry shares increased more than 10 percent on August 12 due to speculations that the smartphone manufacturer will be sold, broken up, or taken private that would be beneficial to investors. The company announced plans to create a board committee to consider a potential sale as well as partnerships and joint ventures.
Prem Watsa is a Toronto-based businessman and BlackBerry’s biggest shareholder. He is stepping down from the board and led to more speculations that he may take part in rescuing the company. Finding buyers will be a difficult task for company. BlackBerry bankers RBC Capital Markets and JPMorgan Chase & Co. have contacted possible bidders for almost a year and found little interest in purchasing the company. This was according to people familiar with the negotiations.
Investors said they consider investing in BlackBerry if the opportunity comes. Shares of BlackBerry dropped 4.1 percent to $10.51 in New York.
Once Heins is ousted without a change of control, he will get $22 million in salary, equity awards and incentive payments based on share price last Mach 28. The payout would include Heins’ base salary of $3 million and around $72,000 in benefits and retirement savings. He is also qualified for a yearly incentive payment of $2.8 million, which goes up to $4.5 million in a change-of-control situation.