Regulators Clear Xilinx Options Practices

No wrongdoing is found.
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Xilinx

(XLNX) - Get Report

moved a step closer to putting its stock option backdating episode behind it.

The San Jose, Calif., company said Thursday that regulators have cleared it of any wrongdoing involving its past stock option accounting practices.

The news comes about three months after Xilinx announced that it had completed its own internal review into backdating and found no evidence of fraud or manipulated option grants.

To account for the difference between the recorded grant dates and measurement dates in certain stock option awards between 1997 and 2006, Xilinx said at the time that it would take a $2.2 million compensation charge -- a relatively nominal sum compared with the hundreds of millions of dollars in restatements that companies like

KLA-Tencor

(KLAC) - Get Report

and

VeriSign

(VRSN) - Get Report

have incurred because of backdating.

Xilinx, a maker of programmable logic chips, is one of the more than 100 companies under scrutiny for the practice of backdating stock options. The company disclosed in June that the

Securities and Exchange Commission

had initiated an informal inquiry into its historical stock option practices.

That investigation has been terminated and no enforcement action has been recommended by the SEC, Xilinx said Thursday. According to the company, the SEC's notification followed an Aug. 31 presentation it made to regulators regarding the findings of its internal review of past stock option practices.

"We are extremely pleased to receive this notification from the SEC. We also would like to thank the members of our Special Committee for their comprehensive work in connection with the investigation," said Xilinx CEO Wim Roelandts.