The former chief financial officer of US movie maker Pixar Animation Studios is facing a possible legal battle with securities regulators for alleged mishandling of stock options, according to documents filed on Monday.
Ann Mather's trouble with the Securities and Exchange Commission was disclosed by Google Inc, where she is a member of the internet search leader's board of directors, reports Associated Press.
Google said the SEC told Mather last week that the agency's Los Angeles staff will recommend a civil complaint be filed against her for alleged stock option abuses that occurred during her five-year period overseeing Pixar's books.
Pixar, which was acquired by Walt Disney Co. for $7.4 billion in 2006, is among dozens of companies that once rigged stock options to give employees a better chance to make money from the rewards.
The practice, known as ‘backdating,’ involves retroactively setting the value of a stock option grant to the recipient's advantage. If it's not properly disclosed, backdating options can exaggerate a company's profits and result in an underpayment of taxes.
Mather's lawyer said there is no basis for legal action against her. ‘Ms. Mather acted diligently and responsibly at all times in her position as CFO at Pixar,’ said Timothy J. Coleman of the law firm Dewey & LeBoeuf.
SEC spokeswoman Michele Wein Layne declined to comment on the agency's case against Mather.
Google chairman Eric Schmidt said the company still supports Mather's re-election to its board at its annual meeting next week. ‘We have the utmost confidence in Ann's integrity as well as her abilities as a director,’ Schmidt said in statement.
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