Time is Running Low for RIM's (RIMM) Balsillie and Lazaridis
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Do you hear that, Research In Motion (Nasdaq: RIMM) Co-CEO and Co-Chairmen Jim Balsillie and Mike Lazaridis? It's time... and it's running thin.
According to Bloomberg, the Laurel & Hardy of the mobile world have just six-months to make enough of an impact to retain their current titles.
Investor Northwest & Ethical Investments made a proposal last month to split the roles, and for RIMs Board to increase its oversight. However, after some smoke-and-mirror tactics which suggested the Chairman title helps to generate business, particularly overseas, the shareholder withdrew its proposal.
The firm said it wanted to give Balsillie and Lazaridis time to prove the title was needed. Notably, the motion was supported by proxy firms Glass Lewis & Co. and Institutional Shareholder Services Inc.
Northwest & Ethical will help draft the new RIM leadership committee's mandate for next year, and the firm will insist the panel reach a conclusion on the separation of CEO and Chairman titles by January 31, 2012, in order for the proposal to be ready for RIMs shareholder meeting later in the year.
The investment officer for California State Teachers’ Retirement System, which holds 450,000 RIM shares, says the Co-CEO and CO-Chairmen set-up is the worst case scenario. The investment officer said, "If they come back with a structure that’s similar to what they have now, even if NEI doesn’t come back and ask for a vote, someone else will."
Do you hear that, Research In Motion (Nasdaq: RIMM) Co-CEO and Co-Chairmen Jim Balsillie and Mike Lazaridis? It's time... and it's running thin.
According to Bloomberg, the Laurel & Hardy of the mobile world have just six-months to make enough of an impact to retain their current titles.
Investor Northwest & Ethical Investments made a proposal last month to split the roles, and for RIMs Board to increase its oversight. However, after some smoke-and-mirror tactics which suggested the Chairman title helps to generate business, particularly overseas, the shareholder withdrew its proposal.
The firm said it wanted to give Balsillie and Lazaridis time to prove the title was needed. Notably, the motion was supported by proxy firms Glass Lewis & Co. and Institutional Shareholder Services Inc.
Northwest & Ethical will help draft the new RIM leadership committee's mandate for next year, and the firm will insist the panel reach a conclusion on the separation of CEO and Chairman titles by January 31, 2012, in order for the proposal to be ready for RIMs shareholder meeting later in the year.
The investment officer for California State Teachers’ Retirement System, which holds 450,000 RIM shares, says the Co-CEO and CO-Chairmen set-up is the worst case scenario. The investment officer said, "If they come back with a structure that’s similar to what they have now, even if NEI doesn’t come back and ask for a vote, someone else will."
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