This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

RIM Co-CEOs Show Two Is a Crowd

NEW YORK ( TheStreet) -- Research In Motion's (RIM) less-than-stellar first-quarter results have cast an unfavorable spotlight on the handset maker's management double act, co-CEOs Jim Balsillie and Mike Lazaridis.

Participants on TheStreet's live blog of RIM's results, released after market close on Thursday, did not pull any punches as they questioned the effectiveness of the dual management team.
Questions are being asked about the effectiveness of the BlackBerry maker's dual management team.

"I think it's harder to see a clear direction from the top if they constantly have to ask 'what do you think' to their partner," said one commenter. Another coined Balsillie and Lazaridis as "the two-headed monster."

"Two CEOs means two salaries -- one should be fired," was the blunt assessment of one commenter, while someone else noted that "the quickest fix for the plunging stock price is the ousting of the two morons."

Balsillie and Lazaridis were quizzed about the value of the co-CEO model during the conference call to discuss the results, with JP Morgan analyst Rod Hall nodding to Google's (GOOG) recent moves to streamline its management structure.

The RIM CEOs spent a chunk of the call awkwardly explaining why they work well together, a somewhat rambling response that will likely fuel further criticism of their joint leadership style.

"I just don't think it's the issue," replied Balsillie. "I think there are parts that overlap and we highly coordinate it."

"We work very closely together and I don't know where all these things are coming from," added Lazaridis.

Co-CEO partnerships are few and far between in the tech sector; they rarely seem to work. The former co-CEOs of underperforming Indian tech giant Wipro, for example, resigned earlier this year, to be replaced by a sole CEO, T.K. Kurien.

RIM handset rival Motorola also boasted two CEOs, who eventually parted ways when the company split earlier this year in an effort to become better focused on its two sectors. Sanjay Jha become the sole CEO of the consumer-oriented Motorola Mobility (MMI), while his counterpart Greg Brown took the helm at enterprise and networks-focused Motorola Solutions (MSI).
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%
YHOO $36.00 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs