Amid rumors that it is looking for a buyer, Palm has instituted a retention program for key employees, including several highest level executives. The program involves stock and cash bonuses to be earned over a two-year period provided that the individuals remain with the company.
As part of the program, Jeffrey P. Devine, Palm’s senior vice president of global operations, and Douglas C. Jeffries, Palm’s senior vice president and chief financial officer, each received a grant of restricted stock units and a cash bonus of $250,000.
Other executives who are part of the program are Mike Bell, who leads the company’s product-realization group, Katie Mitic, the head of product marketing.
This move may have been spurred by the resignation of Michael Abbott, who leads the application platform and services development for Palm’s webOS platform. Abbott is leaving the company in a few weeks.
Getting Ready for a Buyout?
After many months of lackluster sales of its latest smartphones, Palm, Inc. supposedly wants to be acquired by a larger company.
Most companies making a buyout offer would like to have the management team intact.