Advisory Firm Recommends Split of RIM (RIMM) Hierarchy
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Advisory firm Glass Lewis & Co. issued a statement Friday suggesting Research In Motion's (Nasdaq: RIMM) current management structure needs a bit of a revamp.
And, no, nobody's going to lose their job in the process.
The firm's comments come ahead of RIM's annual shareholder meeting on Tuesday, July 12.
Glass Lawis & Co. argues the company's current dual-ECO and Chairman structure is "inadequate." A vote on whether RIM should split the role of Chairman and CEO will be on the ballot.
Currently, Jim Balsillie and Mike Lazaridis both serve as CEO and Chairmen of RIM.
Glass Lewis analysts said "we are concerned that the current co-chair/CEO structure provides inadequate independent checks on executives and management, particularly since the co-CEOs founded the company and are its largest shareholders."
Balsillie also took on the role of Chief Marketing Officer earlier in the year.
Further, Glass Lewis recommended that shareholders not vote for John Richardson, who was on RIMs audit committee when the Company was investigated for alleged stock backdating.
RIM has come under heavy investor scrutiny lately, following dismal earnings reports over the last few quarters, and continual market share loss as consumers turn to Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) for their next smartphone or tablet.
Shares of RIM are trading over 4 percent lower Friday.
And, no, nobody's going to lose their job in the process.
The firm's comments come ahead of RIM's annual shareholder meeting on Tuesday, July 12.
Glass Lawis & Co. argues the company's current dual-ECO and Chairman structure is "inadequate." A vote on whether RIM should split the role of Chairman and CEO will be on the ballot.
Currently, Jim Balsillie and Mike Lazaridis both serve as CEO and Chairmen of RIM.
Glass Lewis analysts said "we are concerned that the current co-chair/CEO structure provides inadequate independent checks on executives and management, particularly since the co-CEOs founded the company and are its largest shareholders."
Balsillie also took on the role of Chief Marketing Officer earlier in the year.
Further, Glass Lewis recommended that shareholders not vote for John Richardson, who was on RIMs audit committee when the Company was investigated for alleged stock backdating.
RIM has come under heavy investor scrutiny lately, following dismal earnings reports over the last few quarters, and continual market share loss as consumers turn to Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) for their next smartphone or tablet.
Shares of RIM are trading over 4 percent lower Friday.
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