Full Document | Comments | Email This Post | Print This Post Continue Reading → From December 1996 to July 2006, Jim Balsillie, Dennis Kavelman (then CFO), Mike Lazaridis and certain other RIM officers and directors engaged in improper stock option granting practices, including backdating and repricing of executive, director and employee stock option awards. In the February 2009 settlement of the Ontario Securities Commission’s enforcement action, Balsillie, Lazaridis and Kavelman agreed that they engaged in option backdating and repricing and that the total “in-the-money” undisclosed benefit from the incorrect option dating practices was approximately million.
S.,” wrote the COO, Kavelman to a manager in an email message.
[BRCM] would allow investors to file a class action suit for a .2 billion backdating scandal originating in 2006.
Broadcom’s CEO, Gregory Reyes, was sentenced to 21 months in jail and will have to pay a million fine. S., 17 companies are presently under investigation for improperly documented options backdating.
Charges vary, depending on the extent to which executives consciously misled investors.
By falsifying the dates on options packages, employees run the risk of affecting a company’s recorded compensation expenses.
The four RIM execs did more than just mislead their investors.