Summary
Analog Devices, Inc. (ADI) announced on May 30, 2008, the settlement of an investigation by the Securities and Exchange Commission (SEC) concerning the company's stock option granting practices. The settlement resolves the SEC's concerns regarding the dating of certain stock options, specifically impacting options granted in 1998, 1999, and 2001. Importantly, neither ADI nor its President and CEO, Jerald G. Fishman, admitted or denied the SEC's allegations, providing a degree of finality to this matter. The company has agreed to pay a civil money penalty of $3 million, and Mr. Fishman will pay a $1 million penalty and disgorge $450,000 plus interest. Certain options granted to Mr. Fishman in 1999 and 2001 will be repriced. ADI has affirmed that no restatement of its historical financial results is necessary, which is a crucial point for investors as it indicates the integrity of past financial reporting remains intact. This settlement concludes the SEC's investigation into this specific issue.
Key Highlights
- 1ADI and its CEO, Jerald G. Fishman, have settled with the SEC regarding past stock option granting practices.
- 2The settlement concludes the SEC's investigation into the dating of certain stock options granted in 1998, 1999, and 2001.
- 3Neither ADI nor Mr. Fishman admitted or denied the SEC's allegations.
- 4ADI will pay a $3 million civil money penalty to the SEC.
- 5Mr. Fishman will pay a $1 million civil money penalty and $450,000 (plus interest) in disgorgement.
- 6Specific stock options granted to Mr. Fishman in 1999 and 2001 will be repriced as part of the settlement.
- 7Analog Devices has determined that no restatement of historical financial results is required.