Foundry chairman and CFO escape axe
Foundry Networks is keeping two executives on the payroll, despite their involvement in a backdating options scandal that could cost the company up to US$205million.
The firm said last week that company founder Bobby Johnson has stepped down as chairman of the board but will continue in his roles of president and CEO, after an internal review found that he selected grant dates for and approved option awards after the grant dates recorded in the company's books.
In a statement, the company said that documents and other data suggested that option grants were awarded "days, or in some cases, weeks after the option grant date recorded in the company's books". Johnson did not, however, receive any options in connection with these grants.
Timothy Heffner has resigned as chief financial officer (CFO) after the review found that he exercised two stock options in which he gained a net-after-tax difference of US$162,000 due to improper dating.
Heffner has agreed to repay the sum and has moved to the role of vice president of corporate development, the company said.
Foundry said it will restate its results for the fiscal years 1999 through to 2005, a move which could cost the company up to US$205million, according to reports.
Foundry's principal accounting officer Daniel Fairfax has been appointed as CFO, and board member Alfred Amoroso is the new chairman.