According to security filings, outgoing BlackBerry CEO Thorsten Heins will make a lot of money on his way out of the company. Based on a new employment contract that was made in April, Heins was expected to make $56 million if he was fired following the sale of BlackBerry.
Since Fairfax Financial was not able to complete the $4.7 billion sale and has decided to invest $1 billion into the handset company instead, Heins is now getting fired. But he is getting a smaller exit package. Heins’ exit package totaled around $22 million recently through the equity-based portion of the compensation package. However, BlackBerry’s shares are trading at lower levels now.
Heins is supposed to receive a current base salary of $3 million for 24 months plus benefits if this termination is considered “without cause or for a good reason.” There’s also $5 million payable in cash or as restricted stock units (RSUs) that vests immediately.
The stock options and RSUs continue to vest over 24 months. If the share price recovers, Heins will make a lot more money. The valuation of the equity portion is based on the share price of BlackBerry as of March 28th, which closed at $14.45 per share.