RIM execs settle with SEC over backdated options
The Securities and Exchange Commission is charging four executives at Research In Motion - the firm behind the BlackBerry - with offences related to the backdating of share options.
The SEC alleges RIM's CFO Dennis Kavelman, former VP of Finance Angelo Loberto, and Co-Chief Executive Officers James Balsillie and Mike Lazaridis illegally backdated share options between 1998 and 2006.
Linda Chatman Thomsen, Director of the SEC's Division of Enforcement. said: "RIM and its highest level executives engaged in widespread backdating of options which provided them and other employees with millions of dollars in undisclosed compensation,"
The same four accepted a deal with Canadian regulators by paying $92m, accepting bans from boardrooms and agreeing to go on courses to remind themselves of the duties of directors of public companies.
RIM has settled the charges with the SEC following its own review of its share option policy.
As part of the settlement the four have repaid profits made from share options without admitting or denying the allegations.
RIM's full statement is here. ®