Trident Microsystems' (TRID) chief executive has resigned, and the company will record a charge related to a restatement prompted by a recent stock-options review.
Trident founder Frank Lin resigned his posts as CEO and chairman, as of last Wednesday. Another unnamed employee, described as a non-executive who reported to Lin, also left.
The company said the board appointed Glen Antle to replace Lin as soon as he resigned. Antle has served on the board since July 1992. The company intends to start a search for a new CEO.
"We will benefit and continue to evolve as a company from the organizational changes we are bringing about today," Antle said in a press release. "We intend to uphold the momentum and complete the investigation, making the appropriate changes as we go, and moving forward as quickly as possible to the greater benefit of our customers, investors and employees."
Antle had been a board member since 1992.
The chipmaker said a probe of its options practices found evidence of manipulated grants to new hires, employees and executives. Preliminary results from the company's investigation into its stock options grants estimates non-cash charges between $40 million and $50 million, for periods between 1994 and 2006.
"The final compensation expense could exceed the current estimate," Trident said.
Because it has not yet finished its stock options review, the company has not filed its 10-K for the year ended June 2006, and its first-quarter 2007 financial statements for the period ended Sept. 2006 to the
Securities and Exchange Commission
Trident said the review process will likely extend past when statements from the Dec. 2006 quarter are normally reported.
The chipmaker also said its board adopted "interim" policies for granting stock options, putting the finance department in charge of administering the process and limiting authority to granting options.
The company said it will review and adopt best practices in other areas of the business including separating the CEO and chairman of the board positions; improving internal controls in the finance department and adding headcount; creating in-house legal support and more experienced human resource support; and reviewing corporate governance practices.
Lin will work as a consultant to assist the new acting CEO in the transition, and then retire.
Shares of the Sunnyvale, Calif. company declined 3.1%, or 65 cents, to $20.16 in extended trading.