Brocade backdating scandal

A 1982 amendment to the tax code created an incentive for executives and their employers to work together to break the law.

The amendment labeled executive compensation in excess of

A 1982 amendment to the tax code created an incentive for executives and their employers to work together to break the law.The amendment labeled executive compensation in excess of $1 million as unreasonable and thus not eligible to be taken as a deduction on the firm's taxes.On May 25, 1999, the company went public at a split-adjusted price of $4.75.

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A 1982 amendment to the tax code created an incentive for executives and their employers to work together to break the law.

The amendment labeled executive compensation in excess of $1 million as unreasonable and thus not eligible to be taken as a deduction on the firm's taxes.

million as unreasonable and thus not eligible to be taken as a deduction on the firm's taxes.

brocade backdating scandal-74

Bonderson (a former executive from Intel Corporation and Sun). Brocade was incorporated on May 14, 1998, in Delaware.

The company's first product, Silk Worm, which was a Fibre Channel switch, was released in early 1997.

When those firms have no ethical boundaries, their wares become suspect.

From a shareholder's perspective, nobody likes to be lied to when providing the financing and paying the salaries.

Originally known for its Fibre Channel storage networks, the company expanded include a wide range of products marketed as third platform technologies.

Offerings included routers and network switches for data center, campus and carrier environments, IP and Fibre Channel storage network fabrics; Network Functions Virtualization (NFV) and software-defined networking (SDN) markets such as a commercial edition of the Open Daylight Project controller; and network management software that spans physical and virtual devices.

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Performance-based compensation, on the other hand, was deductible.

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