Palm loses exec, implements retention plan, stock dives

Beleaguered smartphone maker Palm Inc. lost its SVP of software and services last week and has implemented a retention program for “key” employees.
In an 8-K filing last week with the Securities and Exchange Commission, Palm reported that Michael Abbott had submitted his resignation effective April 23. The move is a blow to the device maker that reports indicate has recently hired investment firms to find a buyer for the company.
Palm also said in its filing that it was “implementing a retention program for certain key employees, including executive officers. The program includes equity awards and cash bonuses to be earned over a two year period provided that the individuals remain as employees of the company.” Palm noted that as part of the program, SVP of Global Operations Jeffrey Devine and SVP and CFO Douglas Jeffries were each given restricted stock units that were included in its 2009 stock plan and a cash bonus of $250,000 each.
After witnessing its stock price surge over the past several weeks following rumors of its potential sale, Palm’s stock dove more than 10% Monday morning as prospects for a buyer dimmed. A number of firms were initially listed as potential buyers for the company that has failed to gain traction with its new WebOS-based devices.