Backdating Shows Some Bite

Top management headed for the exits at two of the San Francisco Bay Area's well-known technology firms, McAfee (MFE Quote) and CNET Networks (CNET Quote), a clear sign that options-backdating scandals are not yet over, and that more departures may follow for firms with similar accounting problems.

While investors seemed relieved that McAfee had put its options questions to rest -- recently bidding the stock up 3.3%, or 86 cents, to $26.65 -- the news had the opposite effect for CNET -- its shares fell 6.5%, or 64 cents, to $9.26.

No doubt contributing to the divergent reactions from investors was the additional news from CNET that it was cutting its revenue guidance to $92.8 million for the third quarter. Previously, the online media firm said sales would range from $93 million to $96 million. Thomson First Call analysts polled had pegged the company for sales of $94.8 million.

Following investigations into its stock-option grant practices, McAfee fired President Kevin Weiss and announced that George Samenuk, the security-software firm's chairman, had retired. Meanwhile, CNET CEO and Chairman Shelby Bonnie resigned, along with the company's general counsel and head of human resources. ...