RIM bosses granted six-month reprieve

By on July 13, 2011 at 9:00 AM.

RIM bosses granted six-month reprieve

RIM has six months to prove a real business need for its Co-CEOs Mike Lazaridis and Jim Balsillie to retain their roles as Co-Chairmen of the Board, otherwise Northwest & Ethical Investments LP will take action. “We wanted to give them a chance to prove that there is an actual business necessity,” Jennifer Coulson, manager of corporate engagement at Northwest & Ethical, told Bloomberg at Tuesday’s RIM shareholder meeting. NEI threatened last month to file a motion to have RIM’s Co-CEOs removed from their roles has Board heads, but the the firm agreed not to proceed with its motion when RIM said it would assemble a committee of independent directors to investigate the matter and make recommendations. Proxy advisor Glass Lewis & Co. would later accuse RIM of using stall tactics to delay the decision, but NEI appears content with the actions RIM is taking, so says its decision to give RIM six months to plead its case. Thus far, RIM’s only real argument in favor of allowing Lazaridis and Balsillie to keep their joint roles has been that their Chairmen titles help the pair generate business overseas. Shares of RIM stock have declined in value by nearly 60% over the past 12 months. More →

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RIM accused of using ‘stall tactics’ to delay management changes

By on July 7, 2011 at 4:44 PM.

RIM accused of using ‘stall tactics’ to delay management changes

Despite agreeing to address concerns over the shared Co-CEO and Co-Chariman roles held by Research In Motion bosses Jim Balsillie and Mike Lazaridis, the company again finds itself in hot water after a report from proxy advisor Glass Lewis & Co. was obtained by Bloomberg on Thursday. RIM announced in June that it would assemble a committee of independent directors to study the CEO and board roles, and then make recommendations as to whether or not the company should consider splitting the CEO and Chairman roles Balsillie and Lazaridis each currently hold. In its report, Glass Lewis wrote that the move was merely a stall tactic used to get Northwest & Ethical Investments LP to withdraw a motion it intended to put forward at RIM’s July shareholder meeting. “The appointment of independent board leadership does not require further study, but rather concrete action,” Glass Lewis analysts noted in their report. “While we commend the board for actively engaging with NEI in an attempt to reach a mutually agreeable solution, we are underwhelmed with the board’s continued avoidance of a commitment to appoint an independent chairman.” More →

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