Feeds

BEA options re-statement hits $400m mark

EVP loses his E

Boost IT visibility and business value

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.®

Best practices for enterprise data

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?