RIM brass get combined $12-million golden handshake

TORONTO — The former co-CEOs of BlackBerry-maker Research In Motion (TSX:RIM) will receive a combined $12 million in payouts for leaving their roles at the struggling company.

TORONTO — The former co-CEOs of BlackBerry-maker Research In Motion (TSX:RIM) will receive a combined $12 million in payouts for leaving their roles at the struggling company.

In a document filed with securities regulators on Thursday, ahead of the company’s annual meeting in July, RIM outlined the details of what each former executive receives.

Jim Balsillie will be paid nearly $8 million in salary and other compensation after stepping down as leader in January and leaving the company two months later.

Mike Lazaridis, who remains a member of the board, will be paid about $4 million in salary and compensation under the condition that he will “continue to make himself reasonably available” to help the company in the future.

The deal also gives Lazaridis his own office, executive assistant, as well as a car and driver for two years, at a combined value of about $733,000.

RIM says in the filings that Balsillie and Lazaridis “revolutionized the worldwide wireless industry with the introduction of the BlackBerry and forever changed how the world communicates.”

The company has seen its stock plummet and its financial results significantly weaken in the face of intense competition from the rival Apple iPhone and devices using Google’s Android operating system.

In January, RIM promoted Thorsten Heins to the leadership role formerly held by Balsillie and Lazaridis.

Heins was paid about $10.2 million for the company’s 2012 financial year including more than $9.5 million in stock-based compensation. He was paid $1.9 million including about $825,000 in stock-based compensation for 2011.

His terms also include an agreement to be paid his annual base salary for 24 months if the company decides to terminate his employment “without cause or for good reason.”

Karima Bawa, who announced her retirement as RIM’s chief legal officer last month, will be paid a lump sum of about $982,000, or 24 months of salary, to maintain a “reasonable ongoing co-operation” with the company and non-compete agreements. Bawa received $2.6 million in salary and other compensation in 2012.

Since Heins took the reins at the company he has outlined plans to reduce its expenses. The move will include laying off an unspecified number of staff in an effort to save $1 billion by the end of fiscal 2013.

RIM hopes that a new line of BlackBerry phones that are powered by its BlackBerry 10 operating system, will help turn around its results when they’re released sometime later this year.

However, speculation has been growing that RIM’s fate is sealed, and that the BlackBerry maker will eventually be sold off either as a whole or in parts.

In late May, the company said it expected to post an operating loss in the first quarter due to weak BlackBerry sales. The results will be issued on June 28.

RIM has also hired J.P. Morgan Securities LLC and RBC Capital Markets to evaluate various strategies, including potential partnerships and licensing.

Also Thursday, the company announced it has nominated former Goldman Sachs managing director Timothy Dattels to be an independent director. He replaces telecom executive Antonio Viana-Baptista who is not seeking re-election, after serving on the board since 2009.

Shares of RIM were down 3.6 per cent, or 39 cents, to close at $10.61 on the Toronto Stock Exchange.

Just Posted

Red Deer convenience store robbed at gunpoint

Police still searching for suspect who robbed 7-Eleven at 40th Avenue and 38th Street

2019 Winter Games seeks artisan vendors

A winter market will be set up on the 2019 Canada Winter Games festival grounds

Kick It To The Curb back next month

Great way to get rid of unwanted stuff

City of Red Deer invests $50,000 in CFR opening ceremony

Several councillors warn it’s a one-time deal

UPDATED: Stretching for a good cause at Central Alberta Yogathon in Red Deer

Funds raised go to Central Alberta Sexual Assault Support Centre

Hurricane rating system fails to account for deadly rain

TRENTON, N.C. — When meteorologists downgraded Hurricane Florence from a powerful Category… Continue reading

Glad company: Trailer for Disney’s ‘Mary Poppins Returns’

LOS ANGELES — A beloved nanny is preparing to take to the… Continue reading

Jeremy Dutcher wins Polaris prize for ‘Wolastoqiyik Lintuwakonawa’

TORONTO — Jeremy Dutcher has won the 2018 Polaris Music Prize for… Continue reading

Statistics Canada reports manufacturing sales rose 0.9 per cent in July

OTTAWA — Statistics Canada says manufacturing sales increased 0.9 per cent in… Continue reading

China raises tariffs on $60B of US goods in technology fight

BEIJING — China on Tuesday announced a tariff hike on $60 billion… Continue reading

Ennis hoping to rejuvenate career with Leafs after getting bought out by Wild

TORONTO — Tyler Ennis has had to prove doubters wrong much of… Continue reading

Champ golfer from Spain killed in Iowa; suspect charged

AMES, Iowa — A man has been charged in the killing of… Continue reading

Korean leaders meet in Pyongyang for potentially tough talks

PYONGYANG, Korea, Democratic People’s Republic Of — South Korean President Moon Jae-in… Continue reading

Most Read