RYSSDAL: Is there something about high-tech companies that make them more vulnerable to this sort of thing?It has been so far largely tech companies that have gotten in trouble. ELSON: Well, I think that tech companies, more than a lot of companies, made extensive use of options back in the ’90s.“There’s going to be a stigma for a while,” said Warren Pritchard, an analyst at Cowen and Co.“It’s like anything — memories need to fade, but there hasn’t been a chance.” Pritchard and others on Wall Street saw Wednesday’s changes not as another black eye for Mc Afee, but as the company’s first step out from under the options scandal cloud.At CNet, Executive Vice President Neil Ashe has been appointed CEO, and Charles Robel has been named board chairman.Jarl Mohn, a former MTV and VH1 executive and founder of E Entertainment Television, has been named CNet’s non-executive chairman.A similar review at online media company CNet Networks in San Francisco led Wednesday to the resignation of co-founder and Chief Executive Shelby Bonnie.The three executives are the latest casualties in a scandal that has ensnared more than 120 U. companies, about one-fourth of them in Silicon Valley.
CNET and Mc Afee are just the latest companies to stumble over their options grants.
Fuller spent much of last night and the early-morning hours breaking the news to Mc Afee senior managers around the world.
“I don’t believe that we’ll have any disruption of business,” he told analysts.
Number one, obviously, the more you make use of options, the more likely you are that something could possibly go wrong.
Secondly, I think in Silicon Valley, because these were young, entrepreneurial companies, I think a lot of people felt less than diligent in their adherence to modern corporate governance standard and other forms of corporate formalities.