RIM CEOs set to depart; COO steps in

BlackBerry maker Research in Motion (RIM) announced yesterday that longtime co-CEOs Jim Balsillie and Mike Lazaridis, who were tasked with reviving the embattled company’s fortunes, will now step down from their posts.

Reportedly, Thorsten Heins, the company’s chief operating officer, will be replacing the pair and will face disgruntled shareholders who have been calling for change during RIM’s declining performance. The company’s unusual corporate structure, which has allowed Balsillie and Lazaridis to hold the positions of joint CEO and chairman, has also raised governance and accountability concerns.  

Earlier this month, Balsillie and Lazaridis said that they did not have any plans to step down because they saw a bright future ahead for the troubled company. But RIM’s directors grew frustrated with empty promises from the pair and, according to news sources, the board was preparing a major executive overhaul by the end of this month, which included tossing out the co-chiefs.

Last year, as the company’s lackluster financial performance came to light, activist investor Jaguar Financial, a shareholder in RIM, publicly attacked the mobile phone company, saying that the chairman and chief executive roles should be spilt in order to optimize shareholder value. 

In December, the Wall Street Journal reported that RIM flirted with the idea of takeovers by Amazon, Nokia and Microsoft but was not engaged in ‘serious talks,’ deciding instead to concentrate on enhancing its current structure.