Forrester CFO quits amid probe of stock-option grants
Forrester Research Inc., of Cambridge, said its chief financial officer and treasurer, Warren Hadley, resigned after an internal investigation found irregularities regarding an option grant for 5,000 shares made to him in 1999.
The initial findings resulted from a probe started by the audit committee of Forrester's board. The committee has hired independent counsel to conduct the investigation. Forrester said it informed the Securities and Exchange Commission.
The impact of the grant to Hadley is not financially material, but the review is still in the early stages, Forrester said.
"Forrester is unable to speculate whether, when the investigation is complete, there will be any material impact on current or prior financial statements," the company said. "Any adjustments that would be required are expected to be non-cash, stock compensation charges and related tax benefit or expense."
A total of 105 companies are currently under SEC or Justice Department scrutiny regarding past stock-option grants and accounting practices, and at least 90 other firms have launched or completed internal reviews, according to an AP review. Hadley is one of now 60 senior executives, including 18 chief executives and a dozen other finance chiefs, who left 33 companies as a result of the various probes.
George F. Colony, Forrester's chairman and chief executive, will also serve as acting CFO while the company searches for Hadley's replacement.
Shares of Forrester dipped 5 cents to end at $28.85 on the Nasdaq.
(AP)
