Lazarides and Balsillie have no plans of leaving their positions anytime soon.
Research in Motion (RIM), which experienced a rough 2011, is turning over a new leaf at the end of this month but this change may not be easy for the battered mobile phone company. News reports indicate that the RIM board is preparing a major executive overhaul by tossing out co-CEOs Mike Lazaridis and Jim Balsillie, who have made it clear they have no plans of stepping down.
The telecommunications company’s board of directors plans to revamp the governance structure at the end of the month, the Financial Post reports. Unnamed sources cited by the newspaper claim that the CEOs will be stripped of their roles and the company will appoint a new chairperson. But Lazaridis and Balsillie plan to stay on board because they are hoping for a ‘turnaround in RIM’s fortunes,’ the newspaper adds. Â
This move comes after disgruntled investors started calling for a change in the company’s unusual corporate structure, which allows Balsillie and Lazaridis to hold the positions of joint CEO and joint chairman. This, however, is just one of the many governance missteps at the company.
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 chairmen 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.
