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Research In Motion Unveils Anti-Insider Trading Policy

5:50 am on November 26, 2007 | Category: Business, Corporate

BlackBerry maker, Research In Motion, has announced a new policy to prevent insider trading, by changing the way executives, directors, and employees can sell off shares in the firm.

The Waterloo, Ontario-based company will permit its high-level employees to set up automatic securities dispositions plans, allowing them to sell, donate, or transfer their shares on an automatic basis, regardless of non-public information they receive after the plan is established.

Once plans are set up according to a predetermined schedule, the potential insider cannot exercise any further control over its workings.

Several RIM executives, including co-CEOs, Jim Balsillie and Mike Lazaridis, opted to set up dispositions plans before the close of business Friday. Balsillie has arranged for approximately $86 million worth of RIM shares to be sold, and $38 million to be donated to charitable organizations over the next 13 months, while Lazaridis has chosen to sell off $100 million and donate $75 million in stock.

RIM said that the shares set to be sold by the two Chief Executives represent only a small portion of their holdings in the company.

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