| Chip maker Trident Microsystems Inc (NASDAQ Stock Symbol TRID) said Monday its chairman and chief executive, Frank C. Lin, has resigned amid an investigation that found that the company used "incorrect measurement dates" when accounting for stock options grants made to new hires, existing employees and officers. Trident, which has previously said it would restate past results to correct its stock-options accounting, did not give a specific reason for Lin's resignation, which was effective Nov. 15. The company said a non-executive employee who reported to Lin has also resigned. Glen M. Antle, a director with the company, has been appointed acting CEO. The company said it expects to record stock options expenses between $40 million to $50 million between 1994 and 2006 as a result of the options irregularities. Trident said it also plans to separate the roles of chairman and CEO going forward, and will review its corporate governance practices. Trident will also revise the process for administering employee stock options, including limiting the authority to grant stock options. Trident is among more than 100 companies under investigation for possibly backdating stock options grants, a practice that can increase the potential windfall for options recipients and be illegal if it is not disclosed to investors or accounted for properly. The company's filing of its results for the fiscal year ended June 30, as well as the fiscal first quarter of 2007 ended Sept. 30, have been delayed pending the completion of its stock options review. Shares fell $1.01, or 4.8 percent, to $19.80 in after-hours trading, having earlier closed down 11 cents at $20.81 on the Nasdaq. |
