Feeds

VeriSign takes $160m hit to cover stock option mess up

As CFO resigns

3 Big data security analytics techniques

VeriSign's chief financial officer resigned last week as the digital certificates firm announced it would take a $160m hit to cover mishandled stock option grants.

The firm blames sloppy record keeping and a laissez-faire attitude to managing stock options for errors which led it to delay filing its papers with the SEC for 2006 and to conduct an audit that's likely to lead to a restatement of its results between 2002 and 2005.

The investigation began in November 2006 when Verisign warned it might have to take a charge of up to $250m to cover the mess.

The resignation of former CFO Dana Evan, who'd been with the firm since June 2006, follows the surprise departure of former chief exec Stratton Sclavos in late May. Both senior execs were the recipients of mishandled stock option grants, but there's no evidence of "intentional wrongdoing" on their part or that of the board as a whole.

Sclavos benefited from a generous severance package when he left the firm in May - worth more than $25m, including $5.5m to sort out a clerical error that left his account 300,000 shares light following a brace of stock splits.

Separately, VeriSign launched an audit of business travel expenses in April that led to Sclavos returning $32,000 of the $568,400 the firm had reimbursed him for the use of his private plane, the San Jose Mercury News reports. That investigation is ongoing.

VeriSign last week filed its delayed report for 2006 with the SEC. The firm is working on filing a delayed report for Q1 2007 as soon as possible. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.