RIM bosses lose billionaire status

REUTERS/Mike Cassese

Research In Motion Ltd. co-chief executives Mike Lazaridis (L) and Jim Balsillie have seen their individual net worth drop steadily in recent years

Jameson Berkow  Jun 23, 2011 – 4:39 PM ET | Last Updated: Jun 23, 2011 4:54 PM ET

Shareholders of Research In Motion Ltd. have taken a beating over the past few months, though none worse than the BlackBerry maker’s two chief executives, who also happen to be the company’s largest individual shareholders.

RIM co-chief executives Mike Lazaridis and Jim Balsillie collectively own more than 10% of the Waterloo, Ont.-based BlackBerry maker. Together, their combined stake is still valued at well over US$1-billion, even after RIM shares fell more than 25% following another disappointing quarterly earnings release from the company.

But individually, the pair have been reduced to mere multi-millionaires.

In March, when RIM shares were worth more than US$60 each, both men found themselves on the most recent Forbes Magazine list of the world’s billionaires.

At the time, Mr. Lazaridis ranked as the world’s 651st richest man with an estimated total net worth of US$1.9-billion while Mr. Balsillie ranked slightly further down the list at number 692 with a personal valuation of about US$1.8-billion.

Despite being worth a collective US$800-million less than they were one year prior, Mr. Balsillie and Mr. Lazaridis were still each able to handle the US$1-billion entry fee into what remains the world’s most exclusive association.

Mr. Balsillie might have even had enough left over to consider buying a hockey team or two.

However, as Forbes reported on Wednesday, RIM’s recent troubles have reduced the net worth of each BlackBerry boss closer to about US$800-million apiece.

Although the company itself has unquestionably taking a greater hit — having dropped more than 80% from a peak valuation exceeding US$78-billion in 2008 to about US$15.6-billion as of market close on Thursday — those in charge might still be in the 10-figure club were it not for all their philanthropic efforts.

Mr. Lazaridis has given more than US$250-million to the University of Waterloo, his alma mater, to establish the Institute for Quantum Computing and the Perimeter Institute for Theoretical Physics.

Mr. Balsillie, meanwhile, has personally funded a variety of educational and advocacy initiatives in recent years, including the Balsillie School of International Affairs at the University of Waterloo.

“Had they not given away so much, they’d still have lost a bundle in the past few months but they would have remained billionaires,” writes Forbes‘ Luisa Kroll.

RIM’s board of directors have approved a share repurchase program of up to 5% of the company’s outstanding stock and the two BlackBerry bosses have remained stalwart in their desire to continue running RIM amid growing calls for them to step aside.