Kla tencor option backdating
In addition, for each backdated grant the executive either presented the minutes to the other Stock Option Committee members for signature or stamped the minutes with a signature stamp the executive maintained bearing the other Stock Option Committee members’ signatures.” “Once the executive selected a backdated grant date and a corresponding exercise price, the executive informed Juniper’s stock administrator, who then entered the grants into Juniper’s stock option tracking software using the backdated date as the grant date. Schroeder as the man who “engineered a scheme” to backdate options routinely, the Securities and Exchange Commission on Wednesday filed civil fraud charges accusing him of rigging options for himself and other employees during the tech boom.
“Even if you made that argument, at some point he received an explicit legal opinion that it was improper and nonetheless continued it.” The action against Schroeder came as the SEC closed the book against KLA-Tencor, the second-largest U. That contrasts with previous cases against Silicon Valley companies Brocade Communications Systems and Mercury Interactive, which faced fraud charges and agreed to pay $28 million and $7 million in penalties, respectively.
As part of the settlement, KLA-Tencor did not admit or deny the accusations, but agreed to an order that bars it from violating federal securities laws.
Weiss said both Schroeder and the CFO were sent the e-mail.
“Accordingly, the company’s finance department, which had been directly appraised of the option, should have taken the compensation charge. Schroeder believes that the finance department’s failure to do so was inadvertent.” After the backdating scandal erupted nationwide in March 2006, more than 270 companies launched internal reviews on stock-option grants or faced SEC and Justice Department investigations, including dozens in Silicon Valley.
The SEC filed its latest stock option backdating enforcement action, this time against a former general counsel of two public companies.
The SEC filed fraud charges against the attorney, Lisa C.The SEC alleges that the Los Altos Hills resident “repeatedly” backdated options to himself and others from 1999 to 2002 and again in 2005.As a founding member of a special stock-option committee empowered by the board in 1997 to approve option grants, Schroeder helped approve hundreds of mispriced options granted to top executives, high-performers and new hires.According to a June 1999 memo from an unidentified executive that instructed the human resources department how to backdate grants for new employees, the company compiled lists of new workers for several weeks, then gave the special committee a list of three or four of the lowest stock prices to pick from.In October 2001, while Schroeder was CEO, one backdated grant created more than 5 million in potential paper profits for scores of employees.KLA had previously settled charges brought by the Commission.