Fabless semiconductor company Marvell Technologies Group Ltd. will keep its CEO and co-founder despite their roles in stock-options backdating.
The company said Monday that a special committee, created after the board discovered that some stock options were given different grant dates than when they were originally awarded, had completed its internal review. The backdating allowed recipients of the grants to earn more on the stock.
The committee found that Sehat Sutardja, CEO of Marvell, participated in a few instances of backdating but recommended that he keep his position of CEO while stepping down as chairman of the board.
Weili Dai, Marvell's cofounder, COO, board member, and executive vice president, will take on a non-management and non-financial role as director of strategic marketing and business development. That change does not follow the recommendation of the committee, but Marvell did not disclose the committee's recommendation for Dai.
Marvell also said that former general counsel of the U.S. operating subsidiary, Matthew Gloss, has been fired and CFO George Hervey has resigned. Mike Tate, former controller and treasure, has temporarily taken on the role as CFO.
Late last year, Sutardja, Dai, and Hervey repaid the company for any profits they made for the backdating and corrected dates on stock they hadn't yet sold.
Sutardja also returned some shares, and Dai cancelled some options.
Marvell expects to restate historical financial results and estimates adding an expense of between $325 million to $350 million for periods through 2006.
The company is looking for a new COO, CFO, and general counsel. It also plans to improve controls and documentation of equity awards and will create a new position of vice president of compliance. In addition, Marvell is seeking three new independent board directors, including one who will serve as chairman.
This story contains corrected information that makes previous versions obsolete and inaccurate.
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