Research In Motion Ltd.'s top two executives cashed in more than $76-million (U.S.) worth of stock options last fiscal year after amassing huge nest eggs of options during the rapid rise in popularity of RIM's BlackBerry wireless device.
Jim Balsillie, chairman and co-chief executive officer, exercised about $47.7-million worth of options, according to a regulatory filing Monday. He held options worth another $57.1-million on March 4, RIM's 2006 fiscal year-end.
Mike Lazaridis, president and co-CEO, exercised about $28.6-million worth of options, holding options valued at about $74-million at year-end. The transactions represent a change in their investment patterns. Neither exercised any options during the previous two years. In fact, at the end of fiscal 2005, each held $117.5-million worth of options, putting them at the top of the option value chart in Canada.
Most analysts see opportunity for continued strong growth by Waterloo, Ont.-based RIM as more businesses opt to give their workers access to mobile e-mail and other corporate data. But some suspect new rivals will snatch significant market share by offering cheaper technology that appeals to both businesses and general consumers.
As part of their 2006 compensation packages, Mr. Balsillie and Mr. Lazaridis each received 150,000 new options, with an exercise price of $74.45. RIM stock fell $1.48 to $62.22 Monday on the Nasdaq Stock Market. The two executives each received a salary of $494,214 (U.S.), up 27 per cent from 2005. Neither collected a bonus or any other annual compensation.
RIM said fiscal 2006 sales rose 53 per cent to $2.07-billion, and profit 79 per cent to $382.1-million. But its stock price rose only 7 per cent as investors fretted about emerging rivals and a patent infringement lawsuit that RIM eventually settled.
