Kla tencor option backdating
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.
In October 2001, while Schroeder was CEO, one backdated grant created more than 5 million in potential paper profits for scores of employees.
Berry, for her role in “illegally backdating stock option grants” from 1997 to 2003, first as GC of KLA-Tencor and then as GC of Juniper Networks.
The SEC alleges that the misconduct resulted in the concealment of hundreds of millions of dollars in executive compensation expenses relating to undisclosed in-the-money option grants.
The executive then selected as the exercise price of the new hire grants the closing price of Juniper’s stock on a date in the past, reflecting the low closing price during a particular period around the time the employees were hired.
For each backdated grant fkom 1999 through 2003, the executive then created Stock Option Committee meeting “minutes” that falsely stated that the Stock Option Committee had met on the date of the low closing price and granted options on that date.” “The executive signed the backdated committee “minutes” as a Stock Option committee member.
“I need a `wartime counselor,’ not someone who can recite page and verse.” Schroeder is fighting the charges, which were filed in U. “All of Ken’s conduct supports our defense that he did not know or was conscious that his company’s accounting was flawed and that he was benefiting from it,” said Shirli Weiss, Schroeder’s defense attorney.