Former Brocade Execs Indicted In Options Scandal - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance
News
7/31/2006
04:21 PM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

Former Brocade Execs Indicted In Options Scandal

Back-dated options were used to recruit new employees and retain existing ones, the government charges.

The federal government is turning the heat way up on the growing stock options scandal. Gregory Reyes, former CEO of storage networking company Brocade Communications Systems, and Stephanie Jensen, former VP of HR, were charged last week with securities fraud, the first criminal charges from the feds. They face up to 20 years in prison and millions in fines and restitution. A former Brocade CFO faces civil charges.

The government accuses the two of repeatedly falsifying the dates of stock options granted to employees and not properly expensing the grants, resulting in greater returns for recipients. Reyes' attorney says he's innocent, and that Reyes himself got no financial gain.

Brocade is one of about 60 companies caught up in the backdating brouhaha, most of which are IT companies that used options to entice talent in the dot-com era. Look for the government to keep up the heat; SEC commissioners have issued vague warnings of additional charges against companies. Meanwhile, it might be a good idea for tech firms to find new incentives for recruiting talent.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
News
How COVID is Changing Technology Futures
Jessica Davis, Senior Editor, Enterprise Apps,  7/23/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
Register for InformationWeek Newsletters
Video
Current Issue
Special Report: Why Performance Testing is Crucial Today
This special report will help enterprises determine what they should expect from performance testing solutions and how to put them to work most efficiently. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll