Risk & Compliance

SEC Drops Altera Options Probe

Last October, amid a $47 million restatement, the microchip maker's CFO retired several months earlier than planned.
Dave CookFebruary 20, 2007

Altera announced Tuesday that the Securities and Exchange Commission has ended its investigation of the company’s stock-option practices and will not recommend any action against the company.

The microchip maker disclosed last June that it would restate its financials for the prior 10 years to correct errors related to accounting for stock-based compensation.

Last October, Altera announced that it had concluded its internal review, and that it expected the restatement to total $47.6 million on a pre-tax basis. The company elaborated that it had uncovered seven mismatches between recorded and actual grant dates.

That same day, the company also announced that chief financial officer Nathan Sarkisian would retire several months earlier than expected. In 2005, he had become embroiled in a controversial dispute with an analyst to whom he ultimately issued a public apology.

Earlier this year, Altera tapped 15-year General Electric veteran Timothy R. Morse as its new senior vice president and CFO.