BlackBerry is going to be sold this year. How can I be so sure? According to Business Insider, the CEO gets $56 million if it happens:
But what is interesting about Heins’ termination payout is how drastically it changed between 2012 and this year. Back in 2012, Heins would have gotten up to ~$21 million in a “double trigger” payout if the company had been acquired (a “change of control,” in boardroom lingo) and he had been terminated as CEO.
But in 2013, that payout suddenly became worth $56 million.
BlackBerry’s current market cap is about $5.47 billion. Even at a 50% premium for the shares (around $15 or so) it would be worth around $8 billion. That would make the CEO payout about 0.7 % of that total.
Now that’s a pretty powerful incentive for the CEO to make a sale happen this year, isn’t it? Odd, when you realize that he only gets about $9 million a year if it succeeds.