February 22, 2013
SEC Still Settling Mercury Interactive Backdating Cases
– Broc Romanek, CompensationStandards.com
Six years after being charged by the SEC, a former CEO and CFO of Mercury Interactive (itself bought by H-P 5 years ago) settled yesterday with the SEC in two separate option backdating cases. The CEO is paying $4.5 million – and the CFO is paying $350k – to settle. Looks like a true Section 304 clawback rather than just disgorgement. As noted in our “Backdated Options” Practice Area, three former outside directors of the company settled with the SEC about 4 and a half years ago…