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BlackBerry CEO John Chen reached hiring deal that could make him US$85 million
TORONTO – A hiring agreement between new BlackBerry (TSX:BB) chief executive John Chen and the troubled smartphone maker could see him getting paid more than US$85 million.
Documents filed with the U.S. Securities and Exchange Commission show that Chen will be paid a yearly salary of $1 million, and a performance bonus of $2 million.
On top of that, the Waterloo, Ont.-based company has agreed to give him 13 million BlackBerry shares that will be paid out over the next five years.
Those shares are worth $84.6 million at the current market value of US$6.51 per share on the New York Stock Exchange.
The agreement is richer than the one offered to previous chief executive Thorsten Heins, whose package topped out at $55.6 million — though it is believed he left this week with a smaller payout of $22 million.
BlackBerry has been in the process of reducing its expenses in an effort to refocus the business, a move which has included laying off 40 per cent of its staff, or about 4,500 employees.
Meanwhile, Fairfax Financial (TSX:FFH) has revealed the names of the five other investors in its US$1-billion financing of smartphone maker BlackBerry.
A separate filing with the SEC says that Mackenzie Financial Corp., Canso Investment Counsel Ltd., Markel Corp., Brookfield Asset Management Inc. and Qatar Holding LLC are the other contributors.
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For more BlackBerry coverage, follow David Friend on Twitter.
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