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Nokia Plan B shareholders give up after 36 hours
The nine wanted to seriously change the current management, which included getting the expulsion of Nokia CEO Stephen Elop. They argued that Nokia should maintain ownership and control of the software layer of its products because software is where innovation, differentiation, and shareholder value can most easily be created. They also wanted a revamp in hiring strategy, the elimination of outdated and bureaucratic R&D practices, and at all cost avoid becoming "a poorly differentiated OEM."
All of that has now gone out the window. They cited two reasons: by the time their plan even came to fruition, most of the talented software developers at Nokia would already be gone, and the institutional investors who hold most of Nokia stock have told them that their legal fiduciary responsibility bars them from going along with an activist plan. You can read the full exit decision, aptly titled Calling it quits, below:
After reviewing the feedback we've received from investors on our Plan B, we have decided not to carry on with it.In the last 36 hours we were contacted by hundreds of individual shareholders (owning anywhere from 10 to 400,000 Nokia shares) pledging to support us by proxy voting or by personally attending the AGM.
Nevertheless, the responses that we received from institutional investors were not encouraging. These institutions have a fiduciary responsibility to their customers and are legally bared from supporting radical initiatives like seating a bunch of kids on the board of directors. If they do not agree with Nokia's plans, they are better off simply divesting and putting their money in other companies that better fit their investing strategy (which is exactly what they have been doing).
We also realized that by the time our Plan B would kick in, most remaining software talent in Nokia would have already left the company, so it would be really an uphill battle to pick up things from there.
This is it from us. It's up to you what to do with your money. We'll stop short of endorsing NokiaPlanC.com or NokiaPlanX.com even though we think they are both very good ideas.
User Comments: 30
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princeton said:
I don't know how old you guys are or what companies you work for. RIM owns the corporate environment. Everything company i've ever worked for was using Blackberries. And yes some have recently allowed employees to use IPhone etc but all of there bread and butter is in a BES server.Look at what any of the directors or the VP in your companies are using most are all on blackberries.
I believe rim makes more money off business than they ever could from the consumer market where andriod and the iphone are strong. Don't get it twisted people that actually use their phones for work use blackberries.
When you actually look at it from the business side and not a end user you will clearly see RIM isn't going anywhere anytime soon. There "old and outdated" berries are still better for doing actual work than any other phone on the market.
So you've been out of work for over a year I presume? Because what you've "seen" is unbelievably old info. TONS of businesses are switching over to android devices.
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@Guest
RIM's forte has been its exceptionally good security when compared to other offerings, and I do agree that businesses still prefer (the older generation at least) Black Berries. We here have almost equal number of Black Berries + WinMO + some WP7 devices at work. Funnily enough only I use Android phone, mainly because my work provided Symbian phone died and I haven't bothered to ask for replacement and using my personal cell phone; although even I am waiting to jump the ship anyway.
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The new nokia change is going to be weird.
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TBH I am very curious about the result of this Microsoft & Nokia partnership, but I understand when people, based on the previous Redmond failures in other areas, don't show any hope in this venture working.
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like most people who support a cause, and are not in it to win it, this article is a perfect example. You got the support and all but you give up
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