The business press is full of reports today that BlackBerry maker Research In Motion (RIM) is to restate its financial statements from 2004 onwards because of stock option reporting errors. The cost is likely to be a $250 million reduction in previously reported earnings. In addition, chairman and co-CEO Jim Balsillie is resigning as chairman.
It's said that RIM:
said a special committee determined that all options granted prior to Feb. 27, 2002, were accounted for incorrectly due to not applying variable accounting. The special committee did not find intentional misconduct on the part of any director or officer, but said hindsight was used to select grant dates with favorable pricing.
Can you believe that? There was no intentional misconduct but 'hindsight was used to select grant dates with favorable pricing'? Why is the truth so hard to admit? And why is it that it's so hard to believe business when it says it can be trusted? This is why.
Candidly, I hope prosecutions follow, if only for abuse of the English language (although I'd add a little more to the charge sheet).