Backdating Shows Some Bite

"After almost six years at McAfee, I have retired as Chairman and CEO in the best interests of the company, its shareholders and employees. I regret that some of the stock-option problems identified by the Special Committee occurred on my watch," Samenuk said in a press release.

The board appointed a search committee for a new CEO immediately and will look internally and externally for candidates.

At CNET, the special committee appointed to oversee the options investigation found problems with options granted from the time of the company's IPO in 1996 through at least 2003. Those errors will result in a previously announced restatement of financial results.

The committee blamed a number of company executives, including the former CFO and the three departing executives for "varying degrees of responsibility."

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

He will remain a director.

The board appointed Neil Ashe to take the reins as CEO and director, effective immediately. Jarl Mohn was appointed non-executive chairman of the board.

CNET said the recently resigned executives and the directors who were granted improperly priced options have agreed voluntarily to have these options repriced on the correct measurement date.

The special committee found that the compensation committee "relied upon management to establish and maintain appropriate procedures with respect to stock-option grants. The report stated that it would have been better practice if the compensation committee had encouraged management to adopt more rigorous procedures and controls during the 1996-2003 period."

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