BlackBerry's co-CEOs were told to loosen their hold on the company to reverse its declining fortunes. As investors put pressure on the top technology company for changes in management, the US-based Institutional Shareholder Services (ISS) asked RIM to split the roles of chief executive officer and chairman to save it.
BlackBerry inventor Mike Lazaridis and Jim Balsillie are co-CEOs as well as co-chairmen of the board of directors. They also have the largest individual shares of 10 per cent. Thus, the two men control management as well as the board of directors.
"There seems to be no compelling rationale for the company to resist handing over all of the duties of chair along with the title, that signals strong board leadership, to an independent director who will preside over all board meetings and decisions,'' the ISS said in a report.
The ISS report said, "Additionally, the company's recent corporate governance issues, coupled with financial underperformance, strengthens the idea that the separation of the co-chairs and co-CEOs roles is necessary and in the best interest of RIM's shareholders."
