Reyes’ case was not the mechanics of it, the backdating, but the morality of it — Mr. Standing before a packed court room that was filled with his supporters — including friends, family, former Brocade employees, Mr.
Reyes’ uncle, the out-going CFO of Google, George Reyes, and former tech investment banking star, Frank Quattrone (whose 2004 conviction for obstruction of justice was overturned in 2006) — Mr Reyes said: Pausing to clear his throat, Mr.
In researching this post, I came across a number of recent reports on Henry Nicholas III, the once high-flying CEO and cofounder of Broadcom. While the story was enthralling, I didn't understand what any of it had to do with a federal investigation into stock option backdating.
The issue of whether backdating is illegal, of whether the accounting rules-violations and financial damage to shareholders that it spawned are worthy of criminal prosecution, has been hotly debated ever since Mr. We’ve written about what founders and other business people can learn from this case ourselves, here and here.
When it comes to the complex and, at times, sensitive matter of stock-option grants for top executives, HR can ill afford to trust that everything will be just fine if they let others worry about the details.
With the mushrooming of federal probes into questionable options grants -- as well as a few high-profile allegations of direct HR involvement in fraudulent cases of options-grants backdating -- it's time to jump in with both feet.
Reyes, right, walks to federal court with his wife Penny in San Francisco, Wednesday, Jan. Reyes, the former chief executive of Brocade Communications Systems Inc., was sentenced... Former Brocade CEO Gregory Reyes was found guilty in August of 10 fraud and conspiracy charges. The former honcho faced up to 20 years in jail, the notes, but the penalty fell when the judge deemed that the company lost no money in the scheme.
The judge, however, noted today that “Reyes acted with the intent to mislead the court.” Sixteen other execs have acknowledged backdating stock options since Reyes was first charged.