Marvell puts co-founder back in executive ranks

sutardjadai.jpg Weili Dai, a Marvell Technology Group co-founder and wife of the company’s chief executive (they are pictured here), was named its vice president of sales for the company’s communications and consumer business unit on Saturday, May 31, the company said in a filing today. Dai resigned as the company’s chief operating officer a year ago after the company’s investigation into past stock option practices revealed that a stock option committee on which she and her husband were the only members was found to have never met, and that minutes reflecting such meetings were “false”.

Last month, she and the company agreed to pay fines of $500,000 and $10 million, respectively, related to SEC charges that the company reported false financial information to investors by improperly backdating stock option grants to employees. The parties settled the matter “”without admitting or denying the allegations.”

Prior to her new appointment Dai had been serving as a “non-executive” employee of the company she helped found with her husband and his brother in 1995. Together the three control about 19.4 percent of Marvell’s stock. Dai’s exercise of options on 1.475 million shares last year netted her a $10.1 million profit, according to the company’s proxy released today.

In a note sent to employees informing them of Dai’s new sales position, chief executive
Sehat Sutardja praised her “great business acumen, strategic thinking and endless passion” and said that her “close relationship with her customers and the foundation of the trust shared with them has given her a strong reputation for the highest degree of professionalism and integrity throughout our technology industry.”

On a personal not, Sutardja added: “”Weili and I also want to take this opportunity to
thank all of you for your loyalty and support over the past 18 months. This has been a
challenging time for Marvell – and for us personally – and we truly appreciate your continued trust and all of your hard work.”

Marvell, a maker of chips used in Apple’s iPhone that is based in Bermuda but operates out of Santa Clara, released first quarter results last week that beat Wall Street’s expectations and help send its shares up 20 percent last week. On Friday, it said it had lured away a new chief financial officer from Integrated Device Technology.

 
 

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  • Javier Castelblanco

    Javier,

    Did you know about this.

 
 
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