Longtime Broadcom Corp. Chief Financial Officer Bill Ruehle is stepping down immediately amid a stock option backdating probe that could cost the company $1.5 billion.
Bruce Kiddoo, vice president and corporate controller, is stepping in as interim
financial chief.
The company said Ruehle “decided to accelerate his retirement as a result of
Broadcom’s previously-announced equity award review.”
Earlier this month, the company’s audit committee said it has found
additional questionable option grants that could double restatement expenses
from the $750 million found in July.
The expense “could be substantially more depending upon the resolution of
certain accounting issues,” Broadcom said.
The latest questionable grants were made from 1998 to 2003. As a result, the
company said it plans to restate results for two more years, 1998 and 1999.
Earlier, Broadcom said it was looking to restate results for 2000 through
part of 2006.
The company’s stock was up slightly in afterhours trading Tuesday.
“Today we launched a global search for a world class CFO to step into the
shoes of Bill Ruehle,” said Scott McGregor, Broadcom’s chief executive.
Henry Samueli, Broadcom’s chairman and cofounder, gave Ruehle kudos for his
work at Broadcom.
“When we decided to take Broadcom public, Bill Ruehle was our first choice
for the job of CFO,” Samueli said. “Bill has been a true leader, helping
build Broadcom into a solid, lasting business and a powerhouse in the
semiconductor industry.”
Ruehle has held the position of CFO at Broadcom for nearly 10 years.
Kiddoo, 45, joined Broadcom in 1999 as controller of the broadband
communications unit. He became the company’s corporate controller in 2002.