Thursday, July 26, 2007

Dumb Corporate Email No. 1,256

How many times do I have to tell you senior execs to stay away from emails doing something shady? When will you start to listen?

The latest alleged miscreant to ignore my advice is Greg Reyes, former CEO of Brocade Communications, whose options backdating case goes to a federal jury tomorrow. If he goes down, it will be due to the fact he, like so many others, decided it was less work to use email than dial the phone.

Evidence of my wisdom, and his folly, is this from The Wall Street Journal’s reportage of closing arguments. Note that Reyes is accused of illegally backdating options 2000-2004.

“In summarizing the government's case, Mr. Reeves ran through evidence for 10 reasons why prosecutors allege Mr. Reyes knew full well that backdating was illegal. As the prosecutor spoke, he left a large whiteboard on an easel facing the jury, displaying the government's Reason No. 1: An October 2004 email that Mr. Reyes sent to another company's board member in which the Brocade CEO wrote, in capital letters: "IT IS ILLEGAL TO BACK-DATE OPTIONS GRANTS.''

No comments: