IBM Gets Formal SEC Probe Notice
IBM
(IBM) - Get International Business Machines Corporation Report
has received notice of a formal, nonpublic investigation by the
Securities and Exchange Commission
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concerning disclosures relating to the company's first-quarter 2005 earnings and expensing of equity compensation.
As
disclosed in June 2005, IBM has been cooperating with the SEC in an informal investigation of this matter, and the company says it will continue to do so.
IBM announced April 5, 2005, that it intended to show in its public financial reports the impact of stock-option grants to employees starting in its first-quarter financial report, which was later released on April 18. IBM also announced that it planned on reducing the amount of equity compensation it granted to employees.
Shares of IBM closed Thursday down 60 cents, or 0.7%, to $83.57.
