RSA Security Queried In SEC OptionProbe
WASHINGTON - (05/23/06) RSA Security announced it isthe latest company to receive an inquiry from the Securities andExchange Commission over the timing of options grants. The SEC hastargeted at least five companies in recent weeks over allegationsthey back-dated the strike date on options in order to afford topexecutives a higher premium. Over the past two months questionsabout the timing of options has created a stir at dozens ofpublicly traded companies, prompting outcries from investors andsome regulators. RSA said the SEC has not indicated that aviolation of law has occurred and the company plans to cooperatefully with the probe. Disclosures of the SEC inquiry comes just twoweeks after RSA said it will pay its newly hired chief financialofficer, Charles Kane, 275,000 stock options, as well as a $440,000salary and a bonus up to 80% of that, and $1.8 million inrestricted stock.