The shares of Research in Motion have slipped more than 4% on Thursday morning after the struggling Blackberry maker appointed a financier to replace the telecom executive on its board, which disappointed the investors looking for more sweeping changes.
The company, whose prices of shares have dipped alongside its once-dominant share of the smart phone market also said, it has paid its new CEO more than $10 million last fiscal year and gave him hundreds of thousands of stock options to take up the top job in January.
It has also revealed millions of dollars in payments to former co-CEO Jim Balsillie when he parted ways with RIM.
Sameet Kanade, analyst at Northern Securities said, “There may be some tough questions asked or some shareholder backlash if the change at the top is just this.”
Research in Motion has lost favor as the email-centric Blackberry falls behind in the fast-changing smartphone market now dominated by Apple Inc’s iPhone and the devices using Google Inc’s Android software.
RIM said, the nomination of financier Timothy Dattels to the board indicates RIM is more seriously planning to go private or a leveraged buyout for the company.
Mr. Dattels is a senior partner at private equity company TPG Capital LP and previously served as Goldman Sachs’ head of investment banking for Asia.
Mr. Dattel will replace Antonio Viana-Baptista, a former Telefonica SA executive who had been a director of RIM since September 2009.
The Blackberry maker did not give any reason for his departure and the company did not respond immediately to requests for comment.
Research in Motion is also planning the reelection of the rest of the board at an AGM on July 10. It also said it aims to add one or more new board members in the current fiscal year.
RIM is a Canadian multinational telecommunications equipments company based in Ontario in Canada. The company provides platforms and solutions for accessing information that includes e-mail, voice, instant messaging, SMS, intranet-based applications and browsing.