Research In Motion co-chief executive’s Jim Balsillie and Mike Lazaridis are facing up to $100 million in fines in regards to backdating stock options, reports The Globe and Mail.
From the Globe:
In 2007, a special committee of RIM’s board investigated the back-dating issue, and determined the company had backdated more than 40 per cent of stock options granted to employees since 1996. It also concluded that 12 of the 16 option grants made to Mr. Balsillie and Mr. Lazaridis between 1996 and 2006, to acquire a total of two million shares, were priced using an incorrect date.
The committee estimated the value of benefit to the two men was about $1.6-million (U.S.) each, gains that they have already repaid, along with full legal costs, to the company.
Before the release of the report, RIM notified the U.S. Securities and Exchange Commission and the OSC that it had uncovered evidence of backdating.
The Ontario Securities Commission is also attempting to force Balsillie off the company’s Board of Director’s. Despite the news, RIM shares are actually up in trading so far today.
via globeandmail
