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Research In Motion Executives Reach Settlement with Ontario Securities Regulator

5:45 am on February 6, 2009 | Category: Business, Corporate, Regulation

The Ontario Securities Commission has agreed to settle a complaint against Research In Motion co-CEOs, James Balsillie and Mike Lazaridis.

Balsillie and Lazaridis received backdated stock options for 10 years, allowing them to receive a higher portion of company profits, relative to other shareholders. They, along with two other executives, have agreed to pay $68 million back to Research In Motion, plus $9 million in fines and costs to the Ontario Securities Commission.

OSC litigator Sasha Angus said the settlement agreement “sends the right message” about the dubious practice of backdating stock options. “We feel it’s important to make the company whole, which has happened. The sanctions send the right message that the conduct we saw here will not be tolerated by anyone.”

Mr. Balsillie apologized unequivocally to shareholders, stating that “we take full responsibility and accept that we’ve made mistakes,” and adding that RIM has taken steps to improve its corporate governance practices.

Balsillie has agreed to step down from the company’s board of directors for at least a year, but will retain his executive position.

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