BlackBerry CEO Compensation Package

sales-compensation1Just last week in my employment relations course, I presented some research on severance and resignation packages.  A severance package is merely a pay and benefits package an employee receives when he or she involuntarily leaves employment at a company.  These packages include everything from stock options to insurance coverage.

Biggest severance package in history?  Remember that time Jack Welch was given a package estimated at around $417 million because GE just didn’t want him anymore?  That story topped the charts and went down in history.  Compared to BlackBerry’s most recent payout to Thorsten Heins at $22 million, GE went crazy.

But, now, large severance packages are expected of top management.  The newest fad seems to be large compensation packages-almost opposite of the severance deal.  A compensation package is a combination of salary and fringe benefits an employer provides to an employee.  So with severance, the employer entices you to leave.  With compensation, the employer entices you to join.

8 hours ago, Mashable released an article on the new CEO of BlackBerry’s compensation package.  The CEO is John Chen and he will be receiving a salary of around $1 million plus a performance bonus of about $2 million.  His package does include stock options.

What do you think about outrageous severance packages, and now high compensation packages?

 

Reference: http://mashable.com/2013/11/11/blackberry-ceo-88-million/

 

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