Tencor scandal options backdating
In October 2001, while Schroeder was CEO, one backdated grant created more than 5 million in potential paper profits for scores of employees.
The biggest beneficiary was Schroeder, with more than .4 million in paper gains, the SEC said.
Also, some companies have independently confirmed that they've been contacted by federal investigators.
Those include Altera, Applied Micro Circuits, Asyst Technologies, CNET Networks (publisher of CNET News.com), Equinix, Foundry Networks, Intuit, Marvell Technology Group, RSA Security and Veri Sign.
The SEC contends that Schroeder – knowingly or through “reckless” oversight – violated securities laws, misled auditors and signed off on inaccurate securities filings after becoming CEO in 1999.
The SEC alleges that the Los Altos Hills resident “repeatedly” backdated options to himself and others from 1999 to 2002 and again in 2005.
If, for example, the strike price is and the shares now trade at , each option would be worth .The first criminal backdating trial, against former Brocade CEO Greg Reyes, is expected to go to the jury in the next few days.Contact Mark Schwanhausser at [email protected] (408) 920-5543.The tech industry's stock option backdating scandal appears to be gathering steam.Last week, federal investigators announced criminal charges against former executives of Brocade Communications Systems, and they're hinting that more cases may be on the way.