Stock options backdating issue

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Under his leadership, the company went public in May 1999, growing from a small startup business into one of the largest and most successful technology companies in the Silicon Valley—a leadership position that it maintains to this day.Brocade showed 7 quarters of profitability and revenue growth during that time—in the first two years alone, revenue growth exceeded 150% altogether.Stock options are promoted by their supporters as the most effective way to align executive and employee interests with those of shareholders.

On June 24, 2010, Reyes was sentenced to 18 months' incarceration and a million fine.Reyes began working full-time position at Convergent while taking evening classes in order to complete his degree.After obtaining his degree, Reyes became an OEM sales representative for Convergent, then left to become Vice President of Sales and Support at Banyan Systems, a networking and data communications software firm.Elizabeth Moore, a key witness to Reyes's conviction and the only employee of Brocade's finance department to be called during the proceedings, testified that neither she nor any other members of the finance department had any knowledge of backdating or fraudulent occurrences within the organization.After the trial's conclusion, however, Moore recanted her testimony, claiming that she had been bullied and pressured by the prosecution to give false testimony.

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