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
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
What Becomes of CFOs During Digital Transformation?
Joao-Pierre S. Ruth, Senior Writer,  2/4/2020
News
Fighting the Coronavirus with Analytics and GIS
Jessica Davis, Senior Editor, Enterprise Apps,  2/3/2020
Slideshows
IT Careers: 10 Job Skills in High Demand This Year
Cynthia Harvey, Freelance Journalist, InformationWeek,  2/3/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read 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