Human Capital & Careers

SEC Ends Equinix Options Query

The company is the second one to clear its name after being cited in a backdating report by The Corporate Library.
Sarah JohnsonDecember 6, 2006

Equinix Inc. has announced that the Securities and Exchange Commission has ended its investigation into the telecommunications company’s stock-option-granting practices. The SEC told Equinix that the the commission will not take enforcement action against it.

In June, Equinix announced that the SEC had begun an informal inquiry related to its stock option grants and practices. Its audit committee and board of directors also finished an internal review and analysis of its past option practices in August.

Equinix was one of about 27 companies facing backdating investigations that were singled out in a report by The Corporate Library for having directors in common with other companies under investigation. It’s the second company mentioned in the report to clear its name in the past week by announcing that the SEC had ended an investigation without enforcement. Semiconductor maker Xilinx made a similar announcement on November 30.

The Corporate Library report, which suggested director ties may have spread the practice of backdating, later was criticized by several of the companies named for containing inaccuracies.