Research in Motion reaches agreement with Ironworkers
Research in Motion (RIM) has entered into a settlement with the Ironworkers Ontario Pension Fund, which had sued the company over its historical option-granting practices.
RIM has agreed to adopt additional corporate governance measures, supplementing those announced in March, that further enhance the performance of the company’s compensation committee and compensation procedures and corporate governance generally. They include a commitment to exclude independent directors from the receipt of stock options, the preparation of a compensation committee charter by an independent corporate governance expert and refinements to the rules governing Board and committee meetings relating to executive compensation.
In addition, co-chief executive officers Jim Balsillie and Mike Lazaridis have agreed to pay RIM a further $2.5-million each to defray the costs incurred by RIM.
The settlement is subject to approval by the Ontario Superior Court of Justice and a hearing has been scheduled for Nov. 5, 2007.
