When it Comes to Governance, Research In Motion is Moving Backwards
Here’s an interesting situation. Research In Motion, a company with a reputation for being forward-thinking in its management and in its products, has a governance problem. It begins with its internal investigation into circumstances surrounding the exercise and accounting of stock options by company insiders and the fact that it is taking an eternity to complete. The TSX- and Nasdaq-listed company is also being investigated by the Securities and Exchange Commission, along with at least 130 other companies, over the same matter. And because of its investigation, RIM has been unable to certify its most recent financial statements for the quarter ending September 2, 2006, leaving investors in quite a fog.
Now, the possibility of stock option irregularities is bad enough, but RIM’s handling of the matter leaves much to be desired. (more…)