(Hopefully) RIM’s final status update

The debacle finally seems to be coming to a close. RIM announced early Monday morning that they will be restating results dating all the way back to 2004 for erroneous stock option granting. The financial reports that RIM’s sliding over the table shows that there will be a $250 million reduction to the numbers already presented. Luckily for RIM, though, there appears to be no intentional wrongdoing on the company’s behalf, so at least there’s a silver lining to this dreary cloud.

The Waterloo, Ontario, maker of the BlackBerry Monday said a special committee determined that all options granted prior to Feb. 27, 2002, were accounted for incorrectly due to not applying variable accounting, and that 321 grants — or 63% of the total awarded — between Feb. 28, 2002, and August 2006, were incorrect.

From December 1996 to August 2006, RIM made approximately 1,500 New Hire Grants and approximately 1,700 Periodic Award Grants. The Special Committee found that the majority of the New Hire Grants were priced and granted as of the employment start date and raise no dating issues. However, as noted above, the Review identified dating issues with respect to a majority of the Periodic Award grants. The accounting errors can be categorized as follows:

• grants to new hires;
• grants on promotion;
• group grants;
• periodic grants; and
• other matters.

Find the full-release here.

Comments [3 Responses]

BlackBerryCool » Weekly Contest: Stock in the future
March 9th, 2007 at 10:16 am

[…] What a week for RIM. We’ll be covering all of the big news of the past two weeks in our podcast (and have you checked out our newsletter yet?), but paying attention to the news could have you walking away with a prize this week. RIM’s practices of stock option granting came to a head on Monday when the company noted that there would be a $250 million dollar reduction in numbers originally posted. In turn, co-CEO Jim Balsillie stepped down as Chairman, he and partner Mike Lazaridis are forking out dough to make things better, and the company seems weaker than it ever has (but nothing to be overly worried about). […]

Leave a Reply

* = Required Fields

Save with the BBCool
Affiliate Network: