Stock option backdating ends George Semenuk's carreer.
Stock option backdating ends George Semenuk's carreer.
An investigation into the mishandling of stock options has prompted McAfee to remove its chief executive George Semenuk as well as the company's president Kevin Weiss.
The company said that Semenuk will be retiring from his position and that Weiss has been terminated. Dale Fuller has been appointed as initerim CEO and president. Charles Robel will take over as chairman.
"I regret that some of the stock option problems identified by the Special Committee occurred on my watch," said Semenuk while announcing his retirement from the position after six years.
The lay-offs follow an investigation into the companies stock practices over the last ten years that focused on "back dating" options. Back dating involves basing stock prices on an earlier date than when the option was granted, allowing the recipient to make more money.
The Securities and Exchange Commission (SEC) has recently begun a crackdown on the back-dating of stock options. Apple Computers and Mercury Interactive both have had executives resign after similar investigations in recent months.
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Along with the loss of Weiss and Semenuk, McAfee said that it will be restating earnings reports it had previously filed with the Securities and Exchange Commission (SEC). The company estimates that the corrections could impact past earnings by $100m to $150m.