CNET CEO, other executives resign
The resignations came as the government ramps up its investigation into the granting of stock options by Silicon Valley companies. Over 100 companies are under investigation for failing to notify shareholders about the possible back-dating of such options.
CNET said that Bonnie would remain a director, while also announcing the resignations of its general counsel, Sharon LeDuy, and the head of human resources, Heather McGaughey.
The online media firm said an internal probe had found "deficiencies" in the way stock options were granted at CNET, "including in some instances the backdating of option grants" between 1996 and 2003.
It said that as a result accounting errors had occurred, and noted that it had previously said it will have to restate some of its financial results.
"The company and its independent auditors are reviewing accounting guidance published by the SEC (Securities and Exchange Commission), and have not yet determined the amount of such charges…or which periods may require restatement," CNET said.
CNET said its internal probe had found that Bonnie, LeDuy and McGaughey bore "varying degrees of responsibility" for the options backdating, but said they had not "engaged in intentional wrongdoing." CNET is the latest firm to be caught up in options backdating.
Computer protection firm McAfee Inc. announced the departure of its top two executives earlier Wednesday over options grants, and Apple Computer has warned it will probably have to revise its financial results.
Back-dating involves changing the grant date to increase the options recipient’s profit. The practice appears to have been rampant as technology firms fought fiercely to hire and retain top talent from the late 1990s.
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