TORONTO -- BlackBerry Ltd. will pay its new interim CEO a base salary of $1 million, a bonus of up to twice that amount as well as stock awards potentially worth some $85 million, in the hopes of turning around Canada's most prominent technology company.
John Chen, the second consecutive chief executive officer at BlackBerry (BBRY) to receive a bumper package, will have to help the embattled smartphone maker regain its footing and win back market share ceded to the likes of Apple's (AAPL) iPhone and a range of devices that run on Google's (GOOG) Android operating system.
Chen was credited with turning around Sybase in the late 1990s. Sybase, an enterprise software company, was eventually acquired by SAP (SAP) in 2010.
Chen's share awards only begin to vest after he completes three years with BlackBerry, and the majority of the options will vest only after he completes his fifth year, according to a regulatory filing late Thursday.
Should Chen be fired without cause, he will be paid up to $6 million, according to the filing.
Chen's appointment came after BlackBerry stunned many Monday when it abandoned plans to sell itself and instead opted to raise funds via a $1 billion notes offering led by Fairfax Holdings, its largest shareholder.
Fairfax, led by investment guru Prem Watsa, had said it was investing $250 million in the offering.
In its filing Thursday, %VIRTUAL-article-sponsoredlinks%BlackBerry said Canso Investment Counsel is investing $300 million in the offering, while Mackenzie Financial, Markel, Qatar Holding, and Brookfield Asset Management are buying the remainder.
As part of the financing deal, BlackBerry has agreed to pay a fee to the investors if it does reach an alternate deal that results in the sale of the company, either before, or within 30 days of the close of this deal.
Depending on the circumstances, the fee could range between $135 million and $250 million.
The investors have also pledged to a standstill agreement, for a period of one year, that restricts them from owning more than 19.9 percent of the company's outstanding shares, a move likely aimed at preventing any creeping takeover of BlackBerry.
Thorsten Heins, who is forced to step down as BlackBerry's CEO as one of the terms attached to the financing deal, could also be set to receive millions in severance after two years in the job. The exact amount will depend on the terms settled with the company.
Apps That Manage Your Money For You
BlackBerry Offers Bumper Package to New CEO
Mint made the Mac App Store's Best of 2012 list for a reason. This simple, clean app shows how much you are spending in each category of your budget by monitoring all of your transactions. We love signing in and getting a quick, dirty rundown of where our money has gone over the last week, and using their personalized budget tools to stay on track. We highly recommend adjusting your budgets for summer months. You might spend less on transportation when the weather is nice, and chances are you could use that extra cash to flesh out that restaurant tab, right?
This is the all-in-one financial organizer. Manage all of your accounts, from credit cards to magazine subscriptions, in one place and even make custom accounts for your rent or cleaning service. Get reminders for bill payments, and monitor all of your travel reward points, too. You'll always know what you owe, how much money you have and can plan for upcoming bills and expenses without having to sift through tons of paperwork.
If you want to isolate the expense tracker function of Mint in a super simple day-to-day app, then DailyCost is a great buy. A wide variety of categories lets users input all of their daily expenses. Holding your phone horizontally, you will be able to see graphs and statistics on your spending. The app also tracks your weekly and monthly spending by category and can be backed up to iCloud for Mac users, so you'll never lose your data.
If you're a heavy traveler, Toshl is an excellent expense and budget tracker. It works with any currency and lets you separate your travel budget from your day-to-day expenses. It comes with all the trappings of a regular money management app, too, such as bill organizer and alerts, and can be synced across all your devices.
Next time you organize a group activity, Tricount will split up the expenses for you. Create the expense report on your phone and organize by person, how much they owe, and then share via email so everyone knows their share. With options for expenses, balance, share, and configuration, the app does all of the math for you.
Never miss a bill payment again. This app reminds you when your payments are due, and lets you pay on the spot from a bank account or credit card, or you can schedule a payment for the future. Connect all of your accounts to the encrypted app and then view them all in one place for easy access and payment options. You'll never overdraft or miss a payment again.
Make and share payments with friends. This app uses the same technology to pay as LivingSocial, Uber and Airbnb. Pay with your debit card or transfer funds from a linked bank account, right to a friend's Venmo account. It is Verisign Certified.