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German takes over Blackberry makers

German businessman Thorsten Heins became the surprise choice on Sunday to replace previous heads of the Canadian-based Research in Motion (RIM), struggling makers of the Blackberry smartphone.

Published: 23 January 2012 08:25 CET
German takes over Blackberry makers
Photo: DPA

The move is seen as the end of an era in the telecommunications industry – under the auspices of previous joint CEOs Mike Lazaridis and Jim Balsillie, RIM became a market leader and made the Blackberry one of the world’s most popular smartphones.

But the rise of Apple’s iPhone and the cheaper alternative provided by the Android smartphones led to Blackberry’s market share and stock value shrinking rapidly, especially in the US.

RIM shareholders have been calling for a radical change of leadership for several months.

“We have learned from the challenges,” Heins said Sunday from the RIM headquarters in Waterloo, Canada. The 54-year-old began his career at the German technology giant Siemens, before switching to RIM in 2007.

“There comes a time in the growth of every successful company when the founders recognize the need to pass the baton to new leadership,” Lazaridis said. “Jim and I went to the board and told them that we thought that time was now.”

“I agree this is the right time to pass the baton to new leadership, and I have complete confidence in Thorsten, the management team and the company,” added Balsillie.

DPA/The Local/bk

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BUSINESS

Fired Ericsson boss to get millions in payouts

Swedish telecoms giant Ericsson has fired its long-standing CEO Hans Vestberg, but said he will receive a severance package amounting to millions of kronor.

Published: 25 July 2016 08:46 CEST
Updated: 25 July 2016 14:53 CEST
Fired Ericsson boss to get millions in payouts
Hans Vestberg of Ericsson. Photo: Christine Olsson/TT
Swedish telecoms giant Ericsson has fired its long-standing CEO Hans Vestberg, the company announced on Monday morning.
 
Vestberg has been under pressure in recent weeks in the light of a falling share price and lower-than-expected profits. Last week, the company – Sweden's second largest by turnover – announced it was doubling the scope of a major cost-cutting program.
 
In a statement on Monday, chairman Leif Johansson said that “given the current market environment and the increased tempo of the execution of the company’s strategy, the board has decided that the time is right for a new leader to drive the next phase of Ericsson’s development.”
 
Johansson said Vestberg had “built strong relationships and partnerships with important customers around the world, and his leadership and energy have been inspiring for both employees and leaders within Ericsson.”
 
Vestberg, 51, has worked at Ericsson since graduating in 1991. He has been CEO since 2010.
 
Ericsson’s share price has plunged 23 percent so far this year, while the market as a whole has fallen just three percent. Operating profits for the second quarter were well below market expectations, at 2.8 billion kronor ($327 million).
 
The company’s deputy CEO Jan Frykhammar has been appointed as interim CEO.
 
Vestberg is likely to receive a severance package of 28 million kronor, seven million of which will be paid out during his six-month notice period.
 
“After the notice period he will get 21 million in severance pay, which corresponds to 18 months of salary. If he gets a new job within these 18 months, the payout could be cut to up to 50 percent,” Ericsson press officer Simon Sundberg told the TT newswire.