The practice of backdating stock options is a pretty sticky one. Basically it manipulates the dates stock options are granted to execs, essentially to maximize their value for the best possible return. Well, apparently RIM’s been doing just that, and that’s a no-no, says the Globe and Mail.
“In his affidavit, Prof. Lie said he reviewed dozens of option grants by RIM since the maker of the popular BlackBerry device went public in 1997. He allegedly found evidence to suggest that options were often granted at the most opportune time for executives. In one calculation, he said the probability of this occurring by chance was one in 26 billion.”
It’ll be interesting to see how RIM deals with this pleasant bombshell of a report.