Two more executives bite the dust:
UPDATE 1-SafeNet top officers resign amid stock option probe
Wed Oct 18, 2006 11:38am ET
UPDATE 1-SafeNet top officers resign amid stock option probe
SafeNet CEO, acting CFO resigns after stock option review
Safenet says restatement charges $20 mln or less
Oct 18 (Reuters) - Information security company SafeNet Inc. (SFNT.O: Quote, Profile, Research) on Wednesday said its two top officers resigned, as an internal probe found that the company had backdated some of its stock option grants.
The company said Chairman and Chief Executive Officer Anthony Caputo and President, Chief Operating Officer and acting Chief Financial Officer Carole Argo resigned, effective immediately.
The company named Walter Straub, an independent director, chairman and interim CEO, and said its board will conduct a search for a permanent replacement.
John Frederick, its vice president and worldwide controller, was named chief accounting officer and interim chief financial officer.
A special committee of independent directors, formed in June to probe the option grants, is continuing its review, it added.
In May, SafeNet received a subpoena from the U.S. attorney for the Southern District of New York on its stock option practices.
It also received an informal inquiry from the U.S. Securities and Exchange Commission requesting information related to the option grants to company directors and officers as well as on certain accounting policies and practices.
SafeNet said it will record a material non-cash, stock-based compensation expenses on these option grants.
The company said it expects to restate results for periods from 2000 through March 31, 2006.
(Reporting by Satrajit Majumder in Bangalore)
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