Still, the SEC said the executives were aware of the violations and took steps to hide the backdating from regulators and the company s own auditors. Balsillie will pay $350,000 toward the SEC penalty, and Mr. com staff writer Last Updated: February 17, 2009: 4:18 PM ET Loan them more money NEW YORK (CNNMoney rim backdating. Balsillie used hindsight to choose favourable low prices for grants of options for himself and Mr rim backdating. Story continues below advertisement Technology analyst Carmi Levy at AR Communications Inc. Chatman Thomsen added that the alleged backdating provided [RIM and its highest executives]and other employees with millions of dollars in undisclosed compensation. The Globe and Mail A +6 The subject who is truly loyal to the Chief Magistrate will neither advise nor submit to arbitrary measures. The backdating, which typically involves issuing options at a below-market price to make the grants more profitable for the recipient, violated the terms of RIM s stock option plan and listing requirements on both U. 264-million at the date of the grants, the SEC said. The co-CEOs each received options worth $2. com) -- Blackberry maker Research in Motion announced Tuesday that the company and four current and former officers have settled an options backdating case brought by the Securities and Exchange Commission. The settlements come just two weeks after RIM and the same executives reached settlements with the OSC, agreeing to pay $77-million (Canadian). Story continues below advertisement Story continues below advertisement The SEC also alleged that Mr.
He added that it is clearer now than it was in the late 1990s that stock option backdating was a breach of the law, and back then, most technology companies were doing the same thing. RIM and its highest executives engaged in widespread backdating of options, SEC enforcement director Linda Chatman Thomsen said in a release yesterday. and four employees, outlining new allegations about how the company backdated stock options and how two executives hid the scheme from its auditors and outside lawyers. RIM said it settled the case, without admitting or denying allegations in a complaint filed by the SEC, and that the company itself is not required to pay a penalty. Kavelman and former vice-president of finance Angelo Loberto took steps to hide the backdating from RIM s auditors and its outside lawyer. The executives agreed to pay fines ranging from $150,000 to $500,000 and to disgorge the value of backdated options totaling $843,414. The SEC said the BlackBerry maker and its executives - including co-chief executive officers Jim Balsillie and Mike Lazaridis - backdated option grants representing almost seven million RIM shares between 1998 and 2006. Lazaridis contacted chief financial officer Dennis Kavelman and asked him to backdate an existing employee s stock options to ensure the employee would get the same benefit granted to the new hire. The options were repriced twice and were worth more than $1-million as a result. In a statement announcing the settlement, RIM said it had previously disclosed a voluntary review of its stock option granting practices in 2006 and had been self-reported to the SEC. ) and be barred from acting as a director or officer for five years. The agency alleges that Kavelman made misleading statements about backdated options at RIM s annual shareholder meeting in 2006 and that he expressly asked a manager not to document improper pricing in an email. At the same time, the SEC alleged that Mr.
He ultimately received options with an initial in-the-money value of $2. Kavelman, now chief operating officer of administration and operations, agreed to pay $500,000 (U. The company itself was not required to make any payments... The two men will pay the largest penalties to the SEC. Loberto, now RIM s vice-president of corporate operations, will pay $425,000 and also be barred from acting as a director or officer for five years. RESEARCH IN MOTION (RIM) RIM settles option backdating case Federal regulators say four of the Blackberry maker s current and former top executives illegally granted stock options. First Published: February 17, 2009: 3:44 PM ETThe Globe and Mail A +6 The subject who is truly loyal to the Chief Magistrate will neither advise nor submit to arbitrary measures. First Published: February 17, 2009: 3:44 PM ET. Backdating occurs when companies look backward to pick a favourable date in the past to grant options, giving employees an instant gain when the options are granted. Kavelman asked a manager not to document the improper pricing in e-mails, noting that it is a major breach of protocol to document option pricing that is not allowed by the Ontario Securities Commission or the SEC. ... .