Wednesday, December 20, 2006

Juniper Plans $900 Million in Charges for Past Stock-Compensation Probems

Juniper Networks announced that its internal Audit Committee has concluded that numerous stock option grants issued in the past differ from the recorded grant dates of such awards. Specifically, it was determined that there were numerous instances in which grant dates were chosen with the benefit of hindsight as to the price of the Company's stock, so as to give favorable prices. Blame was attributed to certain management members who are no longer with the company.



Therefore, Juniper currently anticipates that it will record additional non-cash charges for stock-based compensation expense of approximately $900 million, 99.9 percent of which relate to options granted between June 9, 1999 and December 31, 2003.



Juniper Networks noted that its CEO, Scott Kriens, received two stock option awards with measurement date issues. However, both options were canceled unexercised in 2001. Kriens has not exercised any stock options since 1998, approximately a year before the company's IPO.



Juniper's Board of Director expressed their continued confidence in Kriens.

http://www.juniper.net

0 comments:

Post a Comment

See also