Stock Option Scandal Prompts Jim Balsillie to Step Down as RIM Chairman

6:15 am on March 6, 2007 | Category: Business, Corporate

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Research In Motion Chairman, Jim Balsillie has agreed to step down from his position, while remaining co-CEO, after the company admitted to improperly accounting for employee stock options.

RIM is one of several technology companies to confess its habit of back-dating stock options given to senior executives, making them more valuable and diluting value for other stockholders.

The company says it will immediately drop this policy and review its financial records for the past three years, re-pricing all unexercised options that were incorrectly priced. RIM executives have promised to repay all financial benefit already received from backdated options.

The company has also announced a new policy preventing any one person from concurrently serving as Chairman and CEO, as Jim Balsillie had.

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