Comverse Technology Execs Resign Amid Options Probe
The CEO and two other executives at Comverse Technology Inc. resigned Monday
amid a company probe of the timing of stock-option grants at the maker of telecommunications
systems and software.
The resignations come two weeks after Comverse said it would delay filing its
2005 annual report and expected to restate results back to 2001 due to issues
stemming from the timing of stock-option grants. In a statement Monday, Comverse
said the departing executives will cooperate with a special board committee
that is reviewing the grants.
Founder Kobi Alexander stepped down from his roles as chairman and CEO, while
David Kreinberg resigned as chief financial officer. William F. Sorin also resigned
from his roles as senior general counsel and corporate secretary. The three
former executives will serve as advisers on an interim basis.
As a result of the resignations, independent director Raz Alon was named interim
CEO. Avi T. Aronovitz, vice president of finance and treasurer, was appointed
interim CFO, and independent director Ron Hiram assumes the role of non-executive
chairman. Paul L. Robinson, vice president of legal and general counsel, will
become executive vice president, chief administrative officer, general counsel
and corporate secretary.
Alexander, Kreinberg and Sorin also stepped down from their board and committee
positions with Verint Systems Inc. New York-based Comverse is the majority owner
of Verint's stock.
Comverse shares rose 65 cents, or 2.9 percent, to $23.30 in early trading on
the Nasdaq. The stock has been trading in a 52-week range of $21.33 to $29.64.