Read The Recorder‘s roundup of the stock-option backdating scandal. There won’t be a test later … but there might be a subpoena.
“We’re definitely aware that a lot of companies go through this,” Guilbault said Tuesday. “We certainly did our research and feel very comfortable and fortunate to bring Stuart on as our general counsel.”
Martin Collins, general counsel of Novellus Systems Inc., a San Jose provider of chip-making equipment, observed that good research would’ve been to Nichols’ benefit. “The published facts about the e-mail exchange probably helped,” he said.
MIPS has had its own backdating troubles. Earlier this year, it took a $32 million charge after an internal investigation revealed that the Mountain View company had misdated options. MIPS, however, escaped any government investigation, Guilbault said.
Nichols replaces Kate Rundle, who resigned as MIPS’ GC in May. Rundle had been given the top legal spot just a year earlier. MIPS said in a separation agreement that, other than being named with other executives in a derivative suit, the company knows of no investigations relating to Rundle.
Nichols was not available for comment, but Novellus’ Collins said MIPS deserves some praise for giving Nichols a job.
“I think it’s terrific news for Stuart, and I think credit is due to the MIPS management team and board of directors for evaluating the individual as opposed to the circumstances at KLA,” Collins said.
“For a public company to take a chance,” said Anna Marie Armstrong, a legal recruiter with Mlegal Consulting, “it says maybe all of these GCs aren’t going to be
“For a public company to take a chance,” said Anna Marie Armstrong, a legal recruiter with Mlegal Consulting, “it says maybe all of these GCs aren’t going to be marred by this.”
