Monday, May 01, 2006

Comverse dump their management team over options scandal

Comverse, the leading telecom software and systems company, has decided to ditch their founder, Chairman and CEO, Kobi Alexander, as well as their CFO and General Council over the alleged abuse of stock option grants.

It looks like the guys leading Comverse may have got a bit cute over granting otions (mainly to themselves) which were backdated or granted ahead of favorable news to give recipients a better chance of profiting from exercising the options. Oops!

And (as if this were not bad enough) as a result of the fiasco Comverse is struggling to file their accounts for last year and may get delisted from Nasdaq! No wonder the guys resigned. What a mess!

And a mess that unwhitting independent (?) board members will have to clean up as they step into the running of the company on an interim basis. Let's hope they can sort things out, at the very least for the employees, customers and shareholders.

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