Human Capital & Careers

TeleTech to Restate over Option Grants

As many as 10 years’ worth of financial statements could be affected.
Stephen TaubNovember 12, 2007

TeleTech said it will restate financials for 1999 through 2007, and possibly 2008, after reviewing its historical practices for granting stock options and other equity-based compensation.

The company, which provides business process outsourcing services, said the restatement will delay the filing of its September quarterly results.

TeleTech said it has not yet determined the amount of additional non-cash compensation expense to be recorded for any prior period, the resulting tax impacts, or the specific periods that require restatement.

Even so, management does not expect the additional expense to have a significant adverse effect on the fundamental business operations.

TeleTech, which has a $1.5 billion market capitalization, said the September quarterly report and restated financials will be filed following completion of its internal review and that of its auditing firm.

“Management is fully supporting the Audit Committee in completing its review of the company’s equity-based compensation practices and will take all actions necessary to complete our required SEC filings, including any necessary restatement of our financial statements, as soon as possible,” CEO Kenneth Tuchman said in a statement.