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:
â€¢ grants to new hires;
â€¢ grants on promotion;
â€¢ group grants;
â€¢ periodic grants; and
â€¢ other matters.
Find the full-release here.