RBC exec said to be a "lock" to replace RIM co-chairmen

Posted:
in General Discussion edited January 2014
Royal Bank of Canada executive Barbara Stymiest is reportedly a "lock" to become the new chairwoman at Research in Motion as investors have become increasingly critical of co-chairmen Mike Lazaridis and Jim Balsillie.



Last year, in an effort to appease activist shareholders displeased with RIM's management, the Waterloo, Ont., smartphone maker formed a committee to investigate the company's corporate structure. That committee's report is due at the end of this month, with a response from RIM required 30 days after it is submitted.



John Paczkowski of All Things D noted on Friday that numerous sources have named Stymiest as the most likely replacement for RIM's co-chairmen.



?Stymiest is a lock for chairwoman,? one insider told the publication. ?The only thing that?s unclear right now is the timeline for her appointment.?



A second source noted that a final decision had yet to be reached, while corroborating the likelihood that she will be appointed. Stymiest, who serves as a member of RBC's Group Executive team, has been a director at RIM since 2007.







Analysts generally view the prospect of Stymiest taking the reins as a step in the right direction, though they note that it will take time to turn the company around.



?We would view such an announcement positively as we believe she will initiate a formal strategic review, possibly trim costs in the hardware business, and possibly announce additional partnerships; however, we continue to see an outright sale in the near-term as unlikely and see near-term results as challenged,? Jefferies analyst Peter Misek told All Things D.



As RIM has struggled in recent years, its co-founders, who serve as both co-CEOs and co-chairmen, have taken the blame for its decline.



?There?s a bigger problem than the market share erosion and product delays,? one analyst told the publication off the record. ?It?s Mike and Jim.?



2011 was a particularly harsh year for the BlackBerry maker. The company reduced its workforce in order to cut costs, saw its entry into the tablet market flop and faced delays to the new smartphone OS that it has hailed as its salvation.



After last quarter's lackluster quarterly results, which included a $485 million charge due to excess PlayBook inventory, Balsillie and Lazaridis cut their salaries to $1 and apologized for the company's performance.



?We ask for your patience and confidence,? Lazaridis said during a conference call with analysts last December. ?We realize we've not met expectations.?



At the time, National Bank Financial analyst Kris Thompson viewed the BlackBerry 10 delay as potentially "the final nail in RIM's coffin," adding that a turnaround is "very, very speculative."



RIM's crumbling stock price has attracted the attention of interested buyers. The company shed more than 70 percent of its market value last year, prompting one analyst to speculate that Apple's App Store alone was worth more than all of RIM. Reports have suggested that online retail giant Amazon had approached BlackBerry about an acquisition, but RIM was said to have turned down the offers.
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Comments

  • Reply 1 of 29
    quinneyquinney Posts: 2,525member
    Stymie





    Stymier





    Stymiest





    Is she going to replace sillylizard as CEO also?
  • Reply 2 of 29
    Quote:
    Originally Posted by quinney View Post


    Stymie





    Stymier





    Stymiest





    Is she going to replace sillylizard as CEO also?



    quite possibly the funniest thing I've seen on this site. lol





    Related note: It's kind of sad how far RIM has fallen...when the iPhone was released they were in a real position to take advantage of this new superphone market (due to their vertical nature) but instead, like microsoft, refused to grow and allowed a relatively unfinished Android to take hold even though I feel it finally matured with the release of 4.0.
  • Reply 3 of 29
    mcarlingmcarling Posts: 1,106member
    It's always possible to find someone willing to take command of a sinking ship.
  • Reply 4 of 29
    What the hell does a banking exec know about running a tech company? Especially in the hyper-competitive mobile devices / ecosystem market.
  • Reply 5 of 29
    What's John Sculley doing these days?
  • Reply 6 of 29
    801801 Posts: 271member
    Quote:
    Originally Posted by mcarling View Post


    It's always possible to find someone willing to take command of a sinking ship.



    This appointment should only be evaluated by the size of the parachute that she negotiated.
  • Reply 7 of 29
    MacProMacPro Posts: 18,164member
    The term is a 'wind up' expert. There to ensure RBS's interests are looked after.
  • Reply 8 of 29
    RIM. The Nortel of this millennium.
  • Reply 9 of 29
    stelligentstelligent Posts: 2,680member
    Quote:
    Originally Posted by tru_canuk View Post


    What the hell does a banking exec know about running a tech company? Especially in the hyper-competitive mobile devices / ecosystem market.



    A chair does not run the company.
  • Reply 10 of 29
    stelligentstelligent Posts: 2,680member
    Quote:
    Originally Posted by JimDreamworx View Post


    RIM. The Nortel of this millennium.



    They said something similar about Apple not that long ago.



    There is nothing to gain by spitting on a company on its way down. Nothing original. Nothing intelligent. Nothing constructive.



    As consumers, we should hope for RIM's revival and hence greater competition, which will push everyone to produce better products for us. As compassionate human beings, we should consider that thousands and thousands of families will be rather adversely affected.
  • Reply 11 of 29
    stelligentstelligent Posts: 2,680member
    Quote:
    Originally Posted by AbsoluteDesignz View Post


    quite possibly the funniest thing I've seen on this site. lol





    Related note: It's kind of sad how far RIM has fallen...when the iPhone was released they were in a real position to take advantage of this new superphone market (due to their vertical nature) but instead, like microsoft, refused to grow and allowed a relatively unfinished Android to take hold even though I feel it finally matured with the release of 4.0.



    To be fair to RIM, they're not the only erstwhile incumbent to have been upended. Look at Nokia. Look at Microsoft. Look at Palm. Look at Sony-Erickson.
  • Reply 12 of 29
    Hope its not Fiorina redux.
  • Reply 13 of 29
    MacProMacPro Posts: 18,164member
    Quote:
    Originally Posted by island hermit View Post


    What's John Sculley doing these days?



    But doesn't he only replace good CEOs?
  • Reply 14 of 29
    inkswampinkswamp Posts: 337member
    Quote:
    Originally Posted by stelligent View Post


    They said something similar about Apple not that long ago.



    There is nothing to gain by spitting on a company on its way down. Nothing original. Nothing intelligent. Nothing constructive.



    I don't think anyone wants to see any company or product fail but I think RIM and their co-CEOs have displayed an astonishing capacity for hubris over the last couple of years and, as a result, have practically invited people to dance on the company's grave. Seriously, you don't dismiss your competitors as "amateur hour" when you're getting your ass handed to you. A little humility and a real effort to take the changes in the smartphone market seriously would have gone a long way.



    Quote:
    Originally Posted by stelligent View Post


    As consumers, we should hope for RIM's revival and hence greater competition, which will push everyone to produce better products for us. As compassionate human beings, we should consider that thousands and thousands of families will be rather adversely affected.



    Anyone at RIM right now who has talent and creativity (and doubtless there are many despite the apparent fact that their leadership isn't listening to any of them) will have no trouble leveraging their time at RIM to find a better job elsewhere. Despite the last couple of years, having RIM on your resume is a good thing. It's not the end of the world for their employees.
  • Reply 15 of 29
    inkswampinkswamp Posts: 337member
    Quote:
    Originally Posted by quinney View Post


    Stymie



    Stymier



    Stymiest



    That was genius. Kudos and thanks for the laugh!
  • Reply 16 of 29
    morkymorky Posts: 172member
    Quote:
    Originally Posted by tru_canuk View Post


    What the hell does a banking exec know about running a tech company? Especially in the hyper-competitive mobile devices / ecosystem market.



    This.



    Quote:
    Originally Posted by island hermit View Post


    What's John Sculley doing these days?



    And this. My exact reaction.
  • Reply 17 of 29
    dasanman69dasanman69 Posts: 12,979member
    Quote:
    Originally Posted by quinney View Post


    Stymie





    Stymier





    Stymiest





    Is she going to replace sillylizard as CEO also?



    Spanky, I'm 'ungry.
  • Reply 18 of 29
    Quote:
    Originally Posted by tru_canuk View Post


    What the hell does a banking exec know about running a tech company? Especially in the hyper-competitive mobile devices / ecosystem market.



    You may want to take a look at Canadian banking and how it's doing relative to the rest of the world -- besides, they're only proposing her as chairwoman, which she's grossly overqualified to handle.
  • Reply 19 of 29
    Quote:
    Originally Posted by tru_canuk View Post


    What the hell does a banking exec know about running a tech company? Especially in the hyper-competitive mobile devices / ecosystem market.



    Apparently more than the current guys.



    The mistakes made were typical business mistakes, like taking several years to even begin to respond to the threat posed by iPhone and then making a lot of dumb-ass mistakes in terms of basic implementation followed by setting unrealistic expectations and then crowing all about how great your stuff was when it clearly wasn't. It's not their strategy that the board disagrees with (so far), it's just their business performance.



    Even though this is a good move though it's far to late for RIM. They may try to get that "London" phone out the door, but if that doesn't wow the market right out of the gate, they will be out of the phone hardware market in a year or two. They've already left the tablet hardware market.
  • Reply 20 of 29
    Quote:
    Originally Posted by anantksundaram View Post


    Hope its not Fiorina redux.



    What a totally sexist remark.



    She's female, and there is another female that was in charge that you don't like, so of course you are worried. Those females, they are all the same right?



    Seriously, just swap out "female" for "black" and you'd be thrown of the forum for making a remark like that.
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