Research in Motion Reveals Multimillion-Dollar Pay for Former Chief Executives
* June 14, 2012 NY Times * Read Later <http://www.readability.com/articles/vxrpkrxe?legacy_bookmarklet=1> OTTAWA - Research in Motion gave its former co-chief executives about $12 million in exit payments after they stepped down this year, the BlackBerry maker disclosed in a securities filing <http://www.sec.gov/Archives/edgar/data/1070235/000134100412000881/form6-k.h tm> on Thursday. Jim Balsillie, who also resigned from RIM's board more recently, will receive about $8 million, the company said. Mike Lazaridis, one of the company's founders and its current vice chairman, was given $4 million on the condition that he remain active with RIM. In the filing, the company said that the directors awarded the payments because the two former executives "revolutionized the worldwide wireless industry with the introduction of the BlackBerry and forever changed how the world communicates." RIM's share price has fallen by about 75 percent over the past year as the company continues to experience a drastic loss of market share in the United States. A new line of phones powered by a new operating system, which RIM hopes will make the BlackBerry attractive to buyers again, is not expected until later this year. Thorsten Heins, a former Siemens executive who succeeded the two men as chief executive, was given a substantial raise to go with his new job. His total compensation during the last fiscal year rose to 10.2 million Canadian dollars. The bulk of that, however, was in RIM stock which the company valued at 9.53 million Canadian dollars when they were granted. Their value fell to 7.1 million Canadian dollars by the end of the fiscal year. Three weeks before their resignations, Mr. Balsillie and Mr. Lazaridis had voluntary cut their pay to a symbolic $1 a year. RIM's shares declined 2.5 percent during Thursday's trading in New York, closing at $10.40. Since Mr. Heins arrival at the top of the company, several senior executives have left. The company has also indicated that more layoffs are coming. RIM indicated in the filing that it has no plans to accept suggestions from several dissident shareholders for new board members. Instead the company said that it would nominate Timothy Dattels, a senior partner at TPG Capital in San Francisco, to replace Antonio Viana-Baptista, who is stepping down from several boards to focus on his job as the chief executive of Credit Suisse in the Iberian Peninsula. Mr. Dattels is a former partner and managing director at Goldman Sachs who was responsible for that firm's investment banking in Asia countries outside of Japan. RIM has hired JPMorgan and RBC Capital Markets to conduct a strategic review which could include selling all or part of the company, although Mr. Heins has made it clear that he prefers to revive RIM through a successful introduction of the new BlackBerry 10 phones. The company has still not provided a specific date for that event.
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