WAKEFIELD, Mass.—Comverse Technology Inc. announced a front-office shakeup amid a company probe into the timing of stock-options grants to top executives.
The telecommunications systems and software producer disclosed the resignation of Chairman and Chief Executive Officer Kobi Alexander, who founded the company in 1984. Chief Financial Officer David Kreinberg also stepped down, and William Sorin resigned from his roles as senior general counsel and corporate secretary.
The moves come two weeks after Comverse said it would miss a deadline for filing its annual report and probably would be forced to restate earnings for the past six years due to concerns regarding some stock-option grants to Alexander and other executives. An investigation by the Wall Street Journal found grants were often priced at or near quarterly low points in the company’s price share, raising questions about whether grant dates had been backdated or pre-dated to maximize profits for recipients.
Comverse said a review committee “reached a preliminary conclusion that the actual dates of measurement for certain past stock-option grants for accounting purposes differed from the recorded grant dates for such awards.”
Independent director Raz Alon was named interim CEO; Treasurer Avi Aronovitz was appointed interim CFO. Interim director Ron Hiram was tabbed as non-executive chairman.
Wall Street seemed pleased by the news as Comverse shares jumped nearly 6 percent to $23.97 per share.
