The study also found that three companies have six directors who sit on more than one implicated company board—Comverse, Verint Systems, and Ulticom.Comverse is the controlling stockholder of Verint, the Corporate Library notes.New York City Comptroller John Liu said the settlement signals that executives can't "play by their own rules behind closed doors." The settlement must be approved by a federal judge in San Jose. In 2007, Juniper settled Securities and Exchange Commission charges over its options practices.The company did not admit wrongdoing and did not have to pay a fine.The two errors trigger other errors in the study, which presents tables listing numbers of directors with multiple board memberships that the Corporate Library considers to be implicated in the options-backdating scandal.“Novellus has not been implicated in any wrongdoing with regard to stock options backdating.“This is not unique to backdating,” he said, noting that the commission routinely looks at the interrelationships among boards during its investigations.
Declaring that it “strongly disagrees with the premise and findings of the report,” Novellus noted that Kurtz, who has been Novellus’s CFO since September 2005, is a member of the boards of Redback Networks and PMC Sierra (which were both named in the report) and chairs the audit committees of both companies.
“He is not on the compensation committees of either of these companies, and therefore is not responsible for oversight of the compensation practices at these companies.
As a result of concerns expressed earlier this year by several analysts, Mr.
Kurtz, as Audit Committee Chair, led an independent investigation of stock option practices at both companies.
The results of the independent investigation concluded that there was no evidence of stock option backdating at either company,” the company said.