KLA-Tencor

(KLAC) - Get Report

, having recently completed a probe into stock option accounting errors, said Tuesday that Founder and Chairman Kenneth Levy plans to retire, effective immediately.

The chip-equipment maker named board member Edward Barnholt, former president and CEO of

Agilent Technologies

(A) - Get Report

, as its new chairman.

The news comes following the company's

Monday night announcement that its general counsel, Stuart Nichols, resigned after an internal investigation into past stock option accounting practices. KLA also terminated all aspects of its relationship with former CEO Kenneth Schroeder.

KLA is among more than 100 companies under scrutiny for the practice of backdating stock options. In June, KLA said it had detected discrepancies between the measurement dates and the recorded grant dates of certain past stock option grants.

KLA said Tuesday that it plans to reprice all outstanding retroactively priced options held by Levy and certain other executives. The exercise price of each repriced option will be increased to the fair market value on the corrected measurement date.

Levy, who was named chairman emeritus, was CEO of KLA from 1975 to 1997 and from mid-1998 to mid-1999. He had been chairman since 1999.