The CEO and Chairman of the number two anti-virus software vendor McAfee Inc has gone into early retirement and the company president was fired as it emerged the vendor could be hit with a charge of up to $150m as it restates 10 years of earnings after yet another stock-option backdating probe.
George Samenuk, CEO of Santa Clara-based McAfee for almost six years, retired in the best interests of the company, according to an official statement. It also confirmed the termination of employment of Kevin Weiss as the company president.
McAfee revealed in July that it had discovered problems with its stock-options practices, and said then it would have to restate results.
The problem was that it had found, like well over 100 other businesses now, that accounting measurement dates for certain stock options dates granted differ from the measurement dates previously used for such awards.
The following month the security software maker said it had received a grand jury subpoena from the US Attorney’s Office for the Northern District of California over its historical employee stock options awards.
Yesterday the anti-virus vendor announced that after finishing a preliminary review, it will need to restate financial statements to record additional non-cash charges for stock-based compensation expenses over a 10-year period. It now believes that the amount of the restatement is likely to be in the range of $100m to $150m.
Holding the fort will be Dale Fuller, the ex-CEO of Borland Corp, who has been appointed as interim CEO at the internet security software firm. Fuller was CEO of Borland from 1999 until his surprise resignation last year. He still remains on the board of directors at the development tools company. He will serve as CEO and president for McAfee only until a replacement is found.
Fuller, who will work out of offices in Plano, Texas, said that after completion of a first-phase investigative process, his focus will now be 100% on running the company, looking after customers, employees, and shareholders.