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Forrester Finds Irregularities
Forrester Research says the internal probe it launched in December has found irregularities in its stock options grants between 1997 and 2003. The statement notes the involvement of some of its current board in approval of grants at the time, but finds no evidence that they knew of wrongdoing.
Former Chief Financial Officer and Treasurer Warren Hadley resigned in December following initial findings from an internal investigation into share option irregularities (DRNO www.mrweb.com/drno/news6269.htm ). The company moved to reshuffle its leadership to fill the gap in the first week of January (DRNO www.mrweb.com/drno/news6284.htm ).
The latest findings, issued yesterday, say that the process of granting, approving and pricing options lacked effective controls and documentation, and was not properly followed. With the investigation ongoing, Forrester is as yet unable to say whether it will have to restate previous results, which periods may be affected, or whether it will be able to file its 2006 results on time.
The statement says that current CEO and acting CFO George Colony participated in some measure in approving stock option grants during the years in question, as did two other current directors who served on the compensation committee. However, the company said it has found no evidence to suggest that any of them was aware of the improper options practices, and that all those persons who actually led the finance and HR departments responsible for controls over option grants during the years in question, are no longer with the company.
Forrester also reported preliminary fourth quarter earnings of $5.5m, up from $3.6m a year previously, and total revenue up 20.2% to $48.9m.
Web site: www.forrester.com .
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