A panel of the Ontario Securities Commission has approved a settlement agreement with top executives of Research In Motion concerning the company’s stock options.

A group of current and former officers and directors of RIM will pay about $77 million to settle allegations involving backdating stock options.

The panel approved the settlement deal during a three-hour hearing in Toronto on Thursday.

The settlement deal is among the biggest ever for the commission.

Jim Balsillie, co-CEO, was handed a $5 million penalty and must pay $700,000 in costs. Balsillie is also barred from serving as a director of a company for a year. He can remain as an executive with RIM. Balsillie has already stepped down as company chairman

Company founder and co-CEO Mike Lazaridis must pay a $1.5 million fine plus $150,000 in costs.

Balsillie, Lazaridis, along with RIM executive Dennis Kavelman, must pay back $38.3 million to RIM to cover financial benefits from the stock options that had not already been repaid.

Kavelman was also fined $1.5 million.

The three men must also pay about $30 million to cover RIM’s investigation costs. Balsillie and Lazaridis have already paid about $15 million.

Balsillie, Lazaridis and Kavelman were also reprimanded by the commission.

In its statement of allegations, the OSC said approximately 1,400 of 3,200 option grants made by RIM during the 10-year period were made using incorrect dating practices.

IE