KLA-Tencor hires ex-BEA CFO, says COO plans to quit

Mark Dentinger, former chief financial officer of BEA Systems prior to its acquisition by Oracle, will start next week as the new CFO at KLA-Tencor, a supplier of chip-making equipment.

Dentinger spent nine years at BEA Systems, “during which he managed all aspects of finance, investor relations, legal, facilities, and information technology, among various other financial roles within the company,” according to a filing KLA made Friday with the SEC.

One thing BEA and KLA have in common: both were forced to restate results after internal investigations at each determined that many option awards to employees were improperly dated.

From April 1997 through May 2006, nine out of every grants were found to “require new measurement dates.” The company eventually had to add $331.7 million in extra charges to account for the mis-priced options. The stock option review itself cost $7.9 million.

KLA-Tencor’s restatement included $370 million in extra charges related to backdated options. Its stock-option investigation eventually led to the ouster of Kenneth Levy, the company’s chairman and founder; General Counsel Stuart Nichols; director Jon Tompkins, the former CEO of Tencor before it merged with KLA; and Kenneth Schroeder, KLA-Tencor’s former CEO who was most recently a senior adviser to the company.

In his new position, Dentinger will be paid a salary of $400,000, a performance-dependent target bonus of $330,000, and 40,000 shares of restricted stock, half of which will vest after two years of service with the rest vesting after his fourth year of service.

KLA-Tencor also announced that John Kispert, who will cease acting as its interim CFO upon Dentinger’s arrival, will step down as chief operating officer at the end of this year. After Kispert leaves, he will continue to draw his $590,000 salary for two years, along with a pro-rated annual “incentive payment” of $375,058, accelerated vesting of his options and restricted stock. Especially nice, Kispert gets to extend to a year the time in which he will have to exercise his options. He agrees to be available to the company for two years after he quits, and will have his health benefits paid for 18 months after he leaves.

Kispert is also entitled to a maximum of $40,000 worth of “professional financial services” during the two years following his departure.

 

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