Tuesday, October 17, 2006

Another Day, Another GC

The options-timing investigations claimed another general counsel, this time at KLA-Tencor, a Silicon Valley company, which announced that Stuart J. Nichols has resigned immediately from the position he held since 2000.  According to a company press release (here), "incorrect measurement dates for certain stock option grants were used for financial accounting purposes, principally during the period July 1, 1997 through June 30, 2002, and as a result, the Company will restate its financial statements to correct the accounting for retroactively priced stock options. The Company now anticipates that the total additional non-cash charges for stock-based compensation expenses will not exceed $400 million."  KLA-Tencor probably would have fired its CEO at the time of the back-dating, except that Kenneth Schroeder retired in 2005, so instead it has terminated all employment relationships with him, which means the usually lucrative "consulting" contract handed out to former CEOs is gone.  The company also announced that it will "cancel all outstanding retroactively priced stock options held by Mr. Schroeder and to re-price all outstanding retroactively priced stock options held by Mr. Nichols."  Welcome to the club. (ph)

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Investigations, Securities | Permalink

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