BlackBerry (TSX:BB) announced after the market close on Monday that its longtime CEO and executive chair John Chen will be retiring from the security software company effective November 4.
This confirmed an earlier report by the Globe and Mail newspaper about the CEO’s departure which sent BlackBerry’s stock 6.5% higher to US$3.63 at the closing bell.
Chen’s retirement from the company aligns with the terms of his contract, BlackBerry said in a statement.
He will be succeeded by current board member Richard (Dick) Lynch who will serve as interim CEO while the company conducts a search for Chen's permanent replacement.
"The board has determined that it is in the best interests of the company to appoint interim executive management to provide continued stability and continuity for BlackBerry as we work through the transition to a new permanent CEO," lead director of the BlackBerry board Prem Watsa said.
"With his deep industry experience and strong leadership track record, Dick is well-positioned to continue advancing our strategy with the board's ongoing support and insight."
Lynch joined the BlackBerry board in 2013, serving as a member of its Compensation, Nomination and Governance Committee, and is also director of Cohere Technologies. He previously served as executive vice-president and chief technology officer of Verizon Communications and Verizon Wireless.
The leadership change-up comes as BlackBerry plans to spin off its Internet of Things (IoT) and cybersecurity business units.
It then intends to move forward with a subsidiary initial public offering (IPO) for its IoT business during the upcoming financial year.
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