Balsillie was reappointed to the board in May 2010.
Notwithstanding RIM’s earlier public representations that the roles of Chairman and CEO were separated, the independent directors agreed, “as an appropriate and effective leadership structure”, to the appointment of Balsillie and Mike Lazaridis as Co-Chairs of the Board and Co-CEOs of the company on December 16, 2010.
The office of the Chairman of the Board of RIM, however, remained vacant as the RIM board responded in April 2010 that the absence of an independent Board Chair did not adversely affect RIM’s “highly independent board structure”.
The goal of “backdating” schemes like this one are usually to alter the date of an options grant to a time when the underlying asset (the company stock) is priced lower–usually to a date that precedes a price jump, so the option becomes “spring loaded.” That way, once the executive exercises the option, it’s worth more relative to its original price.
That’s not necessarily illegal, unless the executives don’t inform the stockholders of the date change.
[BRCM] would allow investors to file a class action suit for a .2 billion backdating scandal originating in 2006.
Broadcom’s CEO, Gregory Reyes, was sentenced to 21 months in jail and will have to pay a million fine. S., 17 companies are presently under investigation for improperly documented options backdating.