CNet Keeps Family Ties

Updated from 6:24 p.m. EDT

While many companies stuck in the backdating morass have adopted a "throw the bums out" approach when evidence of manipulated options materializes, CNet (CNET Quote) is keeping its co-founder, who resigned Wednesday as chairman and CEO, on the board of directors.

That left some scratching their heads.

It's not clear yet what ex-CEO Shelby Bonnie's role was in the company's backdating. A report by a special committee reviewing the options grant procedures at CNet "does not conclude that any current ... or any recently resigned employees engaged in intentional wrongdoing," the company said.

At the same time, CNet said that Bonnie, along with the company's just-resigned general counsel, head of human resources and the company's ex-CFO "bear varying degrees of responsibility for these deficiencies."

"The decision to stay on as a director is Mr. Bonnie's. He was elected as a director (by) the company's shareholders," Sarah Cain, a spokeswoman for CNet said in an e-mail. "The board appreciates Mr. Bonnie's willingness to work with them and the company to assist with this transition."

"I apologize for the option-related problems that happened under my leadership," Bonnie said in a press release earlier Wednesday. "I believe that the company has come a long way since 2003 in addressing these deficiencies, but am deeply disappointed it happened nonetheless."

Corporate governance experts said it's likely the company didn't want to divorce itself completely from Bonnie's expertise.

"The cleanest way to do this would be to have him leave the board," says Jim Post, a professor of management at Boston University who teaches corporate governance and ethics for the school's MBA program.

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