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BlackBerry chief executive John Chen uses a Passport smartphone following the official launch event in Toronto.Aaron Harris/Reuters

BlackBerry Ltd. chief executive officer John Chen saw a dramatic drop in his pay package for fiscal 2015.

Mr. Chen's total compensation for fiscal 2015 was $3.4-million (U.S.), compared with $85.8-million in the previous year, according to the company's regulatory filing ahead of the annual shareholders' meeting next month.

The reduction is due mainly to the fact that Mr. Chen was not eligible to benefit from a grant of restricted shares vesting over five years from his start date in November, 2013.

The smartphone maker also announced a share buyback program for up to 12 million common shares representing about 2.6 per cent of the outstanding public float.

The news sent the company's shares up 1.85 per cent in morning trade on Nasdaq.

Waterloo, Ont.-based BlackBerry said it plans to cancel the shares it buys back in order to offset a new employee share purchase plan.

The new plan proposes to increase the number of BlackBerry shares available under its equity incentive plan.

The share repurchase program would remain in place for up to 12 months.

"The purpose of this repurchase program will be to offset dilution that may result from our proposed employee share purchase plan and from proposed amendments to our equity incentive plan," Mr. Chen said.

"We intend to take advantage of our strong cash position to purchase our shares when the market price does not reflect what we view to be the underlying value and future prospects of our business, without adversely affecting our strategic initiatives."

Mr. Chen was hired to turnaround the company after the failed attempt to market a new line of smartphones. It is now concentrating on security-oriented software and sales to enterprise customers.

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Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 18/03/24 4:00pm EDT.

SymbolName% changeLast
BB-T
Blackberry Ltd
-6.79%3.57

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