Speaking of stock options:
AP
Broadcom Told to Turn Over Docs
Wednesday May 2, 8:41 pm ET
Grand Jury Subpoenas Documents in Broadcom Options Probe
LOS ANGELES (AP) -- Computer chip maker Broadcom Corp., the subject of a criminal probe over its handling of stock options, has been ordered by a federal grand jury to turn over documents, the company said in a regulatory filing.
The Irvine-based company said in Tuesday's filing with the Securities and Exchange Commission that it was cooperating and had already provided some documents to the U.S. attorney's office for the Central District of California.
Meanwhile, authorities were interviewing present and former Broadcom employees, according to the filing, which did not name those questioned.
Broadcom disclosed in January that several executives, including co-founder Henry T. Nicholas III, were responsible for improperly backdating stock options that led the company to restate earnings and record $2.22 billion in non-cash expenses.
Like other companies, Broadcom used stock options as an incentive to attract and retain talent. The options give the holder the right to buy shares at a set price in the future.
A number of companies manipulated the timing of options to give recipients bigger gains when they exercised the options.
Options backdating isn't necessarily illegal, but securities laws require companies to properly disclose the practice in accounting and settle any charges that may result.
Broadcom shares rose 68 cents, or 2.1 percent, to $32.73 on Wednesday.
Remember when RMTR did their bookkeeping adjustment on their options. |
