Former Brocade CEO Greg Reyes Guilty in Stock Options Case

A jury just found former Brocade CEO Greg Reyes guilty on all 10 counts in the government’s first stock options backdating case against an executive. It’s a surprisingly clear victory for the feds on an issue that has divided many in the business community. I can’t speak to the specific legalities of the Reyes case or what the jury thought, but I have made no secret that, unlike many in Silicon Valley, I think backdating is a serious issue of ethics. Clearly, a jury agreed, at least in this case. And given that the Reyes case, at least at first, was seen by some as not an especially strong one for the government, the ringing verdict is going to knock a lot of Silicon Valley execs back on their heels. More to come as we hear….

To continue reading this article you must be a Bloomberg Professional Service Subscriber.