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RIM Could Benefit from Corporate Governance

RIM has been plagued by falling stocks and service failures.

Establishing a strong corporate governance program has often been seen as a means of avoiding corruption and a subsequent scandal, but it could also be useful for ensuring the company is capable of responding quickly and effectively in times of crisis.

An editorial from The Globe and Mail points to the recent struggles of Research In Motion - a sharp drop in stock prices, a global service outage that lasted three days and a tablet launch that staggered at the gate - as a strong case for CEOs to pass chairman duties over to the board of directors. "Give corporate governance a chance," the editors say, as this could stop the rapid deterioration of a company whose stocks were valued at $148 in 2008.

The co-CEOs, Jim Balsillie and Mike Lazaridis, "have built RIM into a world-class company," the editors say, pointing to the 70 million subscribers, secure mobile technology and lack of debt as proof of this. "RIM has been an industry leader and it surely still has a fighting chance. But it is time for them both to step down as chairs."