Companies
RIM to restate financial results following stock options review
RIM, maker of the Blackberry
email device, has delayed filing its interim results for the second and third
quarter of 2007 and is to restate its results for 2004, 2005, 2006 and the first
quarter of 2007. This follows an internal review of stock option grants.
The review discovered option backdating had taken place, in some cases grants
dates having been altered to precede a run-up in the company’s share price –
although this was not attributed to any intentional misconduct.
Following the review the company also announced that the roles of chairman
and chief executive will be separated with the current holder – Jim Balsillie –
stepping down as chairman while remaining co-chief executive.
A new oversight committee of the board will be established, wholly comprising
of independent directors, and will examine such matters as executive
compensation, use of stock options and trading by insiders.
Both Balsillie and Mike Lazaridis, RIM’s other co-chief executive, have
agreed to defray the costs of the review and restatement by contributing up to
CA$5m each.
Link
RIM
April, 2007 |
