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Governance Issues Arising from Corporate Scandals Sarbanes-Oxley Legislation News & Views Enron Timelines World Com Timelines Governance Best Practices - TELUS what are being reported as sweeping corporate governance reforms - reforms being made in the wake of a disclosure of US0 million in accounting errors related to under-reporting stock option costs.
Moreover, said Doyle, boards led by or dominated by company executives tend to be ineffectual -- all the more so when, as in the case of RIM, the CEOs are not only board members, but company founders and major shareholders." This governance practice of separating the role of board chair and CEO, is particularly desirable in publicly-traded corporations where the profit interests of founders who continue to hold both chair and CEO positions might conflict with the interests of shareholders.
If needed there will be a contested election - a true election.
RIM made its initial public offering of stock in 1997.
It would appear that governance practices did not evolve when RIM evolved from being a private corporation to a public corporation.
Both are reported to have offered to reimburse RIM C million each to help defray costs related to the accounting review, calling this their "Warren Buffett moment!! Balsillie was also "directly involved" in approving stock option grants, some of which were later discovered to have been "accounted for incorrectly". Balsillie's direct involvement in approving grants diminished over time..." Balsillie adds that the accounting problems were related to RIM's strong growth.
"You grow so fast you almost don't pay as much attention to all the governance practices as you should." he said.