Human Capital & Careers

SEC Probes Dean Foods, Silicon Image

Both the food company and the semiconductor maker have also ordered internal investigations of their stock option practices.
Stephen TaubNovember 2, 2006

Two companies—Dean Foods and Silicon Image—are apparently the newest targets of informal Securities and Exchange Commission probes into corporate stock option practices. Both companies said they would cooperate fully with the inquiries.

Last week, Dean reported that it had appointed a special committee of its independent directors to look into possible backdating of stock options. The internal probe came in response to two shareholder derivative lawsuits filed against the company.

The suits name certain current and former members of the Dean’s board and management, according to a company announcement that didn’t name the individuals. “Over the past few months, the company has carefully reviewed its historical stock option grants with its counsel and consulted with its independent auditors,” the food company said.

Dean said that it does not believe there has been any “inappropriate conduct” and that it doesn’t expect to restate its financials.

Meanwhile, Silicon Image reported that the commission has launched an informal probe into the semiconductor maker’s option-granting practices from January 1, 2004 through October 31, 2006.

Further, the company, which said that it intends to cooperate fully with the SEC, reported that it had voluntarily started an internal review of its historical stock option compensation practices.