Security software and hardware company SafeNet announced that it has reached a settlement with two former top executives regarding previously granted stock options.
Former chairman and chief executive officer Anthony A. Caputo and former president, chief operating officer, and acting chief financial officer Carole D. Argo resigned last October following a review of the company’s stock-option practices. The company later restated five years of results.
According to a regulatory filing, Caputo agreed to transfer $1.5 million, and Argo, $100,000, to an escrow account, which will be released to the company once certain legal deadlines have passed. The settlement also provides for the cancellation of certain options granted to the two former executives.
Previously, SafeNet had also disclosed that it would reprice certain options granted to Caputo, Argo, and Ken Mueller, who had resigned as CFO earlier in 2006, reported the Baltimore Sun.
SafeNet has agreed to be acquired by Vector Capital, a technology buyout firm, for about $634 million in cash. On Tuesday, Vector announced that the Hart-Scott-Rodino waiting period had expired.