Feeds

BEA options re-statement hits $400m mark

EVP loses his E

Secure remote control for conventional and virtual desktops

BEA Systems will restate almost a decade's worth of earnings to the tune of nearly $400m thanks to misallocation of stock to employees.

The middleware vendor plans to restate results for the years 1998 until 2007 - up to the first quarter - recording a charge for non-cash expenses of between $340m and $390m. The majority of the charge covers the years between 1999 and 2002. The final total has yet to be determined by BEA, external auditors and regulators.

In further fall out, BEA's chief executive Alfred Chuang has agreed to pay tax on $2.4m profits he made when he vested options that were misawarded to him by BEA before he ascended to the chief executive's role in 2001. BEA's audit committee cleared Chuang of involvement in the misallocation, according to the company's latest 8-K filing here.

BEA's vice president of business planning and corporate development Bill Klien has also agreed to pay back all gains on stock realized after tax.

In a further wrap on the knuckles for Klein, the executive is being demoted as he was responsible for finance, administration and human resources - the units now being blamed for the misallocation of stock.

Klein, who joined BEA in 2000 and was chief financial officer and EVP of finance and administration, is loosing his current EVP role but will remain as vice president of business planning and corporate development. Kevin Faulkner, BEA's head of investor relations, told The Register: "HR owned the process. HR reported to Bill in his role as EVP of finance and administration."

All BEA executives have voluntarily agreed to have all outstanding stock options re-priced in line with dates they were granted, as determined by BEA's audit committee.

BEA is expected to announce preliminary fiscal year and fourth quarter results next week, but totals will not be final until the full restatement is completed.®

Secure remote control for conventional and virtual desktops

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.