BEA options re-statement hits $400m mark
EVP loses his E
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.®
Sponsored: Global DDoS threat landscape report