Friday, November 10, 2006

Cooperate or You're Gone

The current environment in the options back-dating investigations is certainly taking a toll on the management at companies, and the pressure to cooperate is intense.  In another example of the attitude of companies toward employees who do not willingly provide information in internal investigations, ScanSource, Inc. announced that an executive vice president for administration and investor relations resigned after refusing to speak with investigators for the special committee looking into options-timing issues.  According to ScanSource's press release (here):

Prior to his resignation, Mr. Bryson's counsel had informed the Special Committee's independent legal counsel that Mr. Bryson declined to be interviewed by the independent legal counsel as a part of the Special Committee's review.

"The Company and its Board and management continue to support the efforts of the Special Committee and the review of the Company's option grant practices," said Jim Foody, Chairman of the Board. "The Company and its Board and management are committed to providing the Special Committee and its advisors with the information and cooperation they need to complete this work."

The price of not speaking "voluntarily" is a resignation, no doubt demanded. (ph)

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