Fines for backdating

Options Backdating The essence of the options backdating scandal can be summarized simply as executives falsifying documents in order to earn more money by deceiving regulators, shareholders and the Internal Revenue Service (IRS).The roots of the scandal date back to 1972, when an accounting rule was put in place permitting companies to avoid recording executive compensation as an expense on their income statements so long as the income was in the form of stock options that were granted at a rate equal to the market price on the day of the grant, often referred to as an at-the-money grant.

Ontario Securities Commission staff and lawyers representing RIM's co-CEOs Jim Balsillie and Mike Lazaridis are reportedly in advanced discussions, the paper said.In March 2007, RIM said that the internal review found no intentional misconduct.Still, Balsillie stepped down as chairman and the company annouced a 0 million restatement to its earnings related to the mistakes it made in granting stock options.Much of its funding came from Israeli government subsidies and tax credits provided to research and development for hi-tech firms.By the mid-1990s, one of its most successful products allowed legal authorities and intelligence agencies to record and store data collected from intercepted communications.Technology analyst Carmi Levy told Reuters that the news of the fine, while possibly larger than RIM had expected, was no surprise.

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