Feeds

ARM plans to charge options against profits

UK market's first 'we're not Enron, oh no sir' move

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

For some time now British businesses have been donning their most sincere expressions and stressing that Enron/Worldcom style shenanigans could not happen here, because UK accounting standards on creative counting are somewhat tighter than the US version. But just in case, chipmaker ARM is reportedly twiddling its numbers with a view to charging the cost of share options against profits.

According to the Independent on Sunday, the company is in talks with auditors PriceWaterhouseCoopers (PWoo), and CEO Robin Saxby is likely to make a statement on the subject when the company announces its Q2 results tomorrow.

The IoS quotes analysts as suggesting a restatement taking options into account would have cut ARM's post-tax earnings last year by 34 per cent, but declines to make any guesses as regards the impact on this year's figures. The Register however reckons that as ARM's stock price is something like a third of what it was in December, and half the price of the last major wodge of options we saw going out, options issued this year ain't going to hurt any time soon.

Grief, issuing the equivalent of Confederate dollars to execs while the stock price goes through the floor could even be viewed as a more fiscally prudent remuneration mechanism than actually paying them more salary. As the market opened this morning ARM's stock price dropped 10 per cent to around 125p, then pulled itself together slightly. Whether this is because the punters recognise ARM's price is already ridiculous, or whether it's because like most people in the UK they haven't read the IoS, is too early to say. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.