I’ve been saying this a lot, but today was a bad day for RIM. Their board of directors met their shareholders and things did not go well for the company according to The Globe And Mail:
But some of the investors present were not as committed to the board. During a somewhat confrontational question and answer session, one investor asked why members of RIM’s board had let the company’s continuing problems fester for so long, and argued that none of the old members of the board should stay on.
“What this company needs is an upheaval,” like the one that took place at CP Rail, he said, drawing applause from some of the 300 or so people at the meeting.
Even before investors had a chance to vent, a proxy shareholder asked several tough questions about the composition of the board.
Vic Alboini, of Jaguar Financial, first asked whether the board was searching for additional technology talent to augment the board – to which Ms. Stymiest said they were searching, and had enlisted a firm for such a task. Then Mr. Alboini asked for the number of votes withheld on the re-election of directors; many, when the list was read out, had percentages of votes withheld above 20 per cent, with director John Richardson having more than 30 per cent of votes withheld. “Clearly this is not an overwhelming approval,” Mr. Alboini said.
Well. This is not going to win any supporters anytime soon. Clearly investors want change and want that change to happen sooner or later. That’s not going to help their stock value and their public perception.
Oh, by the way it’s get worse for RIM:
As part of its strategic review, RIM has also made changes to its senior management team, including the hiring of new chief marketing, operating and legal officers. Still, Mr. [RIM CEO Thorsten] Heins once again predicted the company will lose money in its second quarter, and that the turnaround will take more time to implement.
Hmmm…. They’re going to lose money in their second quarter? And there’s no new product until sometime next year? That’s a recipe for failure. No wonder investors are ticked off.