RE:Parsing Chen's new contract: $16m to $43m/yearI wonder if this means Chen would be more willing to entertain a takeover bid as long as it's over $30 US? My hope that if that was presented, the offer would be much higher.
I think this is fantastic news, but it's a very rich offer. This is why people get mad about CEO's making hundreds of millions of dollars (or more) while everyone else is making far far less.
Yasch22 wrote: This one will pay Chen a LOT more than he got last time around, though BB has not yet revealed what the final part of his reward will be. There are 4 parts to the package.
Part 1: Base salary. Going from memory, it's $2m per year right now plus short-term cash incentives that can amount to at least $1m per year.
Part 2: Time-based compensation: On Nov. 3 of each year for the next five years Chen will get 1m restricted share units. At today's rates, he'll be getting $13m US ($17m CDN).
Part 3: Performance-based compensation in 5 tranches. Chen gets another 1m in Restricted Share Units if the sp reaches $16 and stays there for 10 days. The same goes for $17, $18, $19, and $20.
That amounts to $16m, $17m, $18m, $19m, & $20m.
Part 4: Performance-based cash award if the sp reaches $30. This award was not specified. But I'm going to guess it amounts to the equivalent of 3 million shares, or $90m.
For Parts 1 to 2, and if the sp stays in the $13 range for the next five years, BB will be paying chen about $15-17m per year (based on $2-3m base+bonuses and $13-14m worth of shares).
For Parts 1 to 4, presuming Chen hits each new milestone in each new year, he'll be making at least $3m base plus pretty well guaranteed bonus. Then add $16m X 2 for Year One time + performance-based RSU's = $35m. In sum: $3m base + $16m time-based + $16m performance-based.
Year 2 = $37m, and $2m more each year until Year 5 @ $20 share price, with JC's salary being $43m.
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From the BB press release: "The five-year contract extension for Mr. Chen is weighted toward long-term performance-based equity and cash awards, in addition to a time-based equity award. There will be no change to Mr. Chen’s base salary, short-term cash incentive, or benefits. The time-based equity award consists of five million restricted share units (RSUs) that will vest annually over five years in equal tranches beginning on November 3, 2019. The performance-based equity award consists of five million RSUs that will vest in five equal tranches if and when the market price of BlackBerry’s shares rises to reach whole dollar amounts from USD $16 to $20. The performance-based cash award will vest and become payable if the market price of BlackBerry’s shares reaches USD $30. The stock price targets for the performance-based equity and cash awards must be achieved over a 10-day trading average. For all the performance-based awards to vest, the market capitalization of BlackBerry would have to reach approximately $16.1 billion, representing an increase of about 134% above BlackBerry’s market capitalization as of the close of trading on March 14, 2018."