said co-founder Shelby Bonnie has resigned as chairman and chief executive after an internal investigation found problems with some of the company's past option grants.
The CNET board named Neil Ashe as the new CEO and appointed Jarl Mohn as nonexecutive chairman. Along with Bonnie, who will remain a director, the company's general counsel and head of human resources have also resigned.
CNET said Wednesday that a special committee set up by its board to examine its historical option awards found "deficiencies with the process by which options were granted," including some instances where backdating occurred.
"A number of executives of the company, including the former CFO and the recently resigned CEO, general counsel and
senior vice president of human resources, bear varying degrees of responsibility for these deficiencies," the committee reported.
However, the committee's report didn't conclude that anyone had intentionally done anything wrong. Executives and directors who received improperly priced options have agreed voluntarily to have the options repriced to fair market value on the correct measurement date.
"I apologize for the option-related problems that happened under my leadership," 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."
CNET expects to restate some of its past results because of the options matter.