Ibm options back dating
Andersen was the auditor of record for the fiscal year ending October 27, 2001.
In February 2002, the proxy recommended reappointment of AA.
“The Board has selected Arthur Andersen LLP, independent auditors, to audit our financial statements for the fiscal year ending October 26, 2002…Arthur Andersen LLP has audited our financial statements annually since October 1997.” On June 18, 2002, Brocade Communications Systems, Inc.
dismissed its independent accountants, Arthur Andersen LLP and on June 18, 2002 engaged the services of KPMG LLP as its new independent accountants for its current fiscal year, ending October 26, 2002.
“Outside” CFOs are the kind that understands financing, IPOs and working with analysts and outside investors.
They are also, presumably, the kind that understands SEC reporting, GAAP and other requirements of a fast growing public company with lots of market exposure.
But KPMG Consulting had been involved with Brocade in the past, while Andersen was the auditor.In addition, he received backdated options himself, the SEC alleged.Byrd signed on with Brocade in May 1999, the same month the company went public. District Court in San Francisco, the SEC claims Byrd was aware of numerous examples of option manipulation.As a CPA and former audit firm partner, Byrd was a classic candidate for these types of CFO positions and profited handsomely from that profile.
Having been involved since the IPO, he was the classic “outside” CFO type versus “inside” CFO type.
Reyes’ watch and more to do with the nature of interactions between executives and their boards, between companies and their accounting firms and between managers and Wall Street. But it prompts a question: Is such a trial one that corporate America could survive? Breyer accepted a bargain between the legal teams, if only to keep the case moving: No conference call transcript would be shown to the jurors; out also is the government’s e-mail allegedly revealing an embittered Mr. Jurors will know that Greg Reyes resigned from Brocade, but they won’t know whether it was because he was pumped to move into a new role or because he was forced to concede his post in shame, and by the same directors who then continued to laud him in public after the fact.” When searching for information about how and when KPMG got involved as the auditor, I was not surprised to find that they inherited the client from Andersen.