McAfee, Inc. today announced that its Board of Directors has named Dale Fuller as Interim Chief Executive Officer and President. The appointment of Mr. Fuller follows the retirement of George Samenuk as the company’s Chairman of the Board and Chief Executive Officer and the Board’s termination of the employment of Kevin Weiss as the company’s President.
Mr. Fuller joined the McAfee Board in January 2006 and served more than six years as Chief Executive Officer and President of Borland Software Corporation. Mr. Fuller was also CEO for WhoWhere? Inc., an internet company that was purchased by Lycos in 1998, and prior to that served as General Manager and Vice President of Apple Computer’s Powerbook division and Vice President and General Manager of NEC’s portable computer division.
In addition, the Board of Directors appointed Charles J. Robel as non-executive Chairman of the Board. Mr. Robel joined the McAfee Board in June 2006 and served as a Managing Member and Chief Operating Officer at Hummer Winblad Venture Partners from 2000 to 2005. He began his career at PricewaterhouseCoopers, from which he retired as a Partner in 2000.
Mr. Samenuk stated in the press release, “After almost six years at McAfee, I have retired as Chairman and CEO in the best interests of the company, its shareholders and employees. I regret that some of the stock option problems identified by the Special Committee occurred on my watch. I am proud of the accomplishments of the McAfee team in serving our millions of customers during my tenure. I wish the McAfee team the best of luck in the coming years.”
Mr. Fuller said in the press release, “I look forward to taking on this leadership role and am committed to continuing the company’s initiatives to provide customers worldwide with innovative security and risk-management software.”
The foregoing personnel actions followed the presentation to the McAfee Board of the determinations by the Special Committee of independent directors regarding the previously announced investigation of McAfee’s historical stock option grant practices and related accounting.
Following the substantial completion of the Special Committee’s previously announced internal review of McAfee’s stock option grant practices, conducted with the assistance of independent counsel and forensic accountants, McAfee has determined that it will need to restate historical financial statements to record additional non-cash charges for stock-based compensation expense over a ten year period. Based on that preliminary review, McAfee currently believes that the amount of the restatement required to record such charges is likely to be in the range of $100 million to $150 million. McAfee will be reviewing recent guidance released by the Office of the Chief Accountant of the U.S. Securities and Exchange Commission (SEC) and will determine, subject to final review by its independent auditors, the exact amount of such charges, the resulting tax and accounting impact, and which specific prior periods require restatement. McAfee intends to file its restated financial results and Annual Report on Form 10-K as quickly as practicable.
The Board has appointed a search subcommittee to immediately commence a search to fill the permanent position of Chief Executive Officer and intends to evaluate both internal and external candidates.
McAfee Inc., headquartered in Santa Clara, California sells Intrusion Prevention and Security Risk Management software and services for securing computer systems and networks: http://www.mcafee.com