Agrees to submit a review of its governance practices
Research In Motion has agreed to settle charges filed by the Ontario Securities Commission relating to an investigation of RIM’s historical stock-option granting practices.
The company has also agreed to submit to a review of its governance practices and procedures by an independent person selected by the OSC and paid for by RIM. Co-CEOs Jim Balsillie and Mike Lazaridis, COO Dennis Kavelman and VP of corporate operations Angelo Loberto have agreed to contribute CAD 92m ($75m) to the settlement. Balsillie, Kavelman and Loberto have also been prohibited from acting as directors of any Canadian reporting issuer for a year.
The company also announced that it has offered to settle with the US Securities and Exchange Commission to resolve the SEC’s separate investigation of RIM’s historical stock-option granting practices.
John Richardson, lead director at RIM, said: RIM is pleased that the parties have resolved matters with the OSC and looks forward to resolving matters with the SEC. While RIM and its directors and officers regret the occurrence of the matters described in the OSC settlement agreement, we believe the actions taken by RIM’s board of directors and management since the conclusion of the company’s internal review in March 2007 have further strengthened it.