He added 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.
"In retrospect, it's easy to say this was punishable behaviour, but at the time, everyone was doing it, and it wasn't really considered so out of bounds," he said.
Kavelman and Loberto consented to an order permanently enjoining them from violating the antifraud, internal controls, books and records and misrepresentation to auditors provisions and from aiding and abetting RIM's violations of the reporting, books and records and internal controls provisions of the federal securities laws.
Kavelman also consented to an order permanently enjoining him from violating the certification provision of the federal securities laws.
Editor's Note: editors read and approve each comment.
He ultimately received options with an initial in-the-money value of .54-million (Canadian). 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.
is reporting that in addition to over million CAD being repaid, the company's co-CEO will be stepping down from its executive board as part of the deal.
Jim Balsillie will reportedly have to fork over million CAD (~.1 million USD) and his position on the board for at least 12 months -- though we're not sure if he intends to return (or if he'll be welcomed back).
On one occasion, Kavelman asked a manager not to document improper pricing in e-mails.
Kavelman wrote, "FYI, it is a major breach of protocol to be discussing (and documenting via email) using option pricing other than that allowable by the Ontario Securities Commission and the SEC in the US." The complaint further alleges that after all four executives were aware of backdating issues that had come to light at other companies, they attended RIM's July 2006 annual shareholder meeting where Kavelman misled investors by denying that RIM was backdating options.
S.) and be barred from acting as a director or officer for five years. Loberto, now RIM's vice-president of corporate operations, will pay 5,000 and also be barred from acting as a director or officer for five years. Balsillie will pay 0,000 toward the SEC penalty, and Mr. The company itself was not required to make any payments.