Tencor scandal options backdating
It also has overhauled its internal controls to prevent a recurrence of the abuses that led the company to restate financial results from 1994 to 2005 to include 0 million in backdating charges.
But that might not be the end of the legal troubles for former executives at KLA-Tencor, where co-founder Kenneth Levy, general counsel Stuart Nichols and director Jon Tompkins resigned as the scandal unfolded starting in May 2006.
While it's not necessarily illegal, in many cases it could be. The Securities and Exchange Commission said last week that at least 80 companies are the subject of a probe.
“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.
Schroeder is among 11 valley executives to face SEC charges, including executives at Apple, Brocade, Mc Afee and Mercury Interactive.
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.