Feeds

BEA options re-statement hits $400m mark

EVP loses his E

Bridging the IT gap between rising business demands and ageing tools

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.®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.