RIM CEO steps down; repays millions

RIM CEO steps down; repays millions
Research In Motion’s co-Chief Executive Jim Balsillie will have to step down from the board. In addition to this, he, along with the other co-CEO Mike Lazaridis and the former CFO of the company, Dennis Kavelman, will have to repay millions of dollars in stock options in order to settle things up with the Canadian Government. Individually, Balsillie will have to pay a $4.1 million fine to the Ontario Securities Commission, with Lazaridis following close behind with a $1.2 million one. According to the agreement, both CEOs and RIM’s former Chief Financial Officer will repay a sum total of $30.9 to the company.

If you think this is already too much, then you’ll be interested to find out that the executives will repay additionally $24.4 million to cover the costs for the internal investigation, conducted by RIM. Jim Balsallie will not be able to return to his post for at least 12 months, however, Lazaridis will keep his one. So, what’s the outcome? With a total of more than $73 million to be repaid, this has become one of the most memorable cases for the Ontario Securities Commission’s enforcement staff.

source: Reuters

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