EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

04.21.13

Microsoft May be Hiding Something Big as It Pays All Its CFOs Millions of Dollars to Keep Quiet After Financial Fraud Whistleblowing

Posted in Finance, Microsoft at 8:34 am by Dr. Roy Schestowitz

“Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers.”

The Economist, 1999

Summary: Yet another CFO receives a lot of money to keep his mouth shut about Microsoft’s accounting practices

A SUBJECT we covered a couple of times this morning (Microsoft's CFO leaving after cooking the books) merits an update as a separate post. A reader showed us a report titled “Microsoft to pay departing CFO Klein $2M for non-compete, secrecy promises”, which echoes what Microsoft did when its previous CEO (Mr. Liddell) left. Remember that Charles Pancerzewski, who had worked for Microsoft in accounting, was paid $4 million to keep quiet [1, 2]. He got this money after had revealed systematic financial corruption at Microsoft. The issue got buried thereafter. Here is what the latest report says:

Microsoft’s chief financial officer, Peter Klein, will receive $2 million in the year after he retires from the company, according to documents filed Thursday with the U.S. Securities and Exchange Commission (SEC).
Klein and Microsoft announced Thursday that he will leave the company after an 11-year stint. He will work through the end of the fiscal year, which for Microsoft wraps up June 30.
As part of his separation package, Klein will receive a $1 million payment on Jan. 15, 2014, and a second $1 million check on June 30, 2014, a Form 8-K filed by Microsoft said.
The payments are “compensation for his services during fiscal year 2013 and performance of his obligations under the Agreement,” the 8-K stated.
That agreement, also posted on the SEC website, bars Klein from working for any firm that competes with Microsoft for a period of one year and mandates that he keep confidential all information about Microsoft.

Microsoft needs to be raided again and properly investigated with no option of settlement (bribery) to stop the process. It sure seems like there is systematic bribery whose purpose is to cover up misconduct. Unless or until all those briberies stop we can — within reason — assume Microsoft to be guilty but too big to jail. “Big to jail” means that you are capable of paying people to subvert the course of justice, be it by ousting someone(s) or bribing someone(s).

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

A Single Comment

  1. Needs Sunlight said,

    April 21, 2013 at 8:57 am

    Gravatar

    One word : Enron

What Else is New


  1. Links 27/2/2017: GNU Linux-libre 4.10, Weston 2.0.0, Git 2.12.0, Linux From Scratch 8.0

    Links for the day



  2. Top Officials in French Government Are Growing Tired of Battistelli's Abuses at the European Patent Office (EPO)

    An automated translation of a recent debate about the EPO in the French government, culminating in intervention by Richard Yung



  3. A US Supreme Court (SCOTUS) Which is Hostile Towards Patent Maximalists May Closely Examine More Patents That Apple Uses Against Android

    A company which often takes pride in designers rather than developers (art, not technical merit) may lose that leverage over the competition if its questionable patents are taken away by the Supremes



  4. As Long as Software Patents Are Granted and Microsoft Equips Trolls With Them, “Azure IP Advantage” is an Attack on Free/Libre Software

    Microsoft is feeding enemies of GNU/Linux and Free/libre Open Source software (FLOSS) in order to sell its 'protection', which it names "IP Advantage" in a rather Orwellian fashion (same naming as back in the Novell days)



  5. Patent Trolls on Their Way Out in the United States and Their Way Into China, No Thanks to the Open Invention Network (OIN)

    An update on patent trolls and the role played by supposed allies of Free/libre software, who in practice do everything to exacerbate the problem rather than resolve it



  6. Insensitivity at the EPO’s Management – Part VIII: When Governed by Criminals, Truth-Tellers Are Cast as Criminals and Criminals as Justice Deliverers

    The bizarre state of affairs at the European Patent Office, where being an honest and transparent person makes one incredibly vulnerable and subjected to constant harassment from the management



  7. The Sickness of the EPO – Part V: Shedding Light on Institutional Abuse Against Ill and/or Disabled Individuals

    The seriousness of the situation at the EPO and a call for action, which requires greater transparency, even if imposed transparency



  8. The EPO's Race to the Bottom in Recruitment and Early Retirements Explained by an Insider

    The European Patent Office under Battistelli is failing to attract -- and certainly failing to retain -- talented examiners



  9. Wouter Pors and Other UPC Boosters Believe That Repeating the Lies Will Potentially Make Them Truths

    The lobbying campaign for UPC, or hopeful lies (sometimes mere rumours) disguised as "news", continues to rely on false perceptions that the UPC is just a matter of time and may actually materialise this year



  10. The Patent Trial and Appeal Board (PTAB) is Utilised in Fixing the US Patent System and the Patent Microcosm Loses Its Mind

    A roundup of PTAB news, ranging from attacks on the legitimacy of PTAB to progress which is made by PTAB, undoing decades of overpatenting



  11. The Patent Trial and Appeal Board (PTAB) and the Federal Circuit (CAFC) Take on Patents Pertaining to Business Methods

    Patents on tasks that can be performed using pen and paper (so-called 'business methods', just like algorithms) and oughtn't be patent-eligible may be the next casualty of the America Invents Act (AIA)



  12. Google's Stewardship of GNU/Linux (Android, Chromebooks and More) in Doubt After Company Resorts to Patent 'First Strikes'

    Google has just turned a little more evil, by essentially using patents as a weapon against the competition (by no means a defensive move)



  13. Links 24/2/2017: Ubuntu 17.04 Beta, OpenBSD Foundation Nets $573,000 in Donations

    Links for the day



  14. IAM, Greased up by the EPO, Continues Lobbying by Shaming Tactics for the UPC, Under the Guise of 'News'

    The shrill and well-paid writers of IAM are still at it, promoting the Unitary Patent (UPC) at every opportunity and every turn



  15. Patent Scope Gone Awry: European Vegetable Patents Office?

    In its misguided race to raise so-called 'production', the EPO lost sight of its original goals and now facilitates patent royalty payments/taxation for naturally-recurring items of nature



  16. Yes, There is Definitely Brain Drain (Experience Deficit) at the European Patent Office and Stakeholders Feel It

    The direction that the European Patent Office has taken under Battistelli undoes many decades (almost half a century) of reputation-building and progress and naturally this repels existing staff, not to mention hampers recruitment efforts



  17. The Sickness of the EPO – Part IV: Cruel Management That Deliberately Attacks the Sick and the Weak

    The dysphoric reality at the European Patent Office, which is becoming like a large cell (with bolted-down windows) where people are controlled by fear and scapegoats are selected to perpetuate this atmosphere of terror and maintain demand (or workload) for the Investigative Stasi



  18. Links 23/2/2017: Qt 5.9 Alpha, First SHA1 Collision

    Links for the day



  19. UPC Roundup: War on the Appeal Boards, British Motion Against the UPC, Fröhlinger Recalled, and Fake News About Spain

    Taking stock of some of the latest attempts to shove the Unitary Patent (UPC) down Europe's throat, courtesy of Team Battistelli and Team UPC



  20. The Sickness of the EPO – Part III: Invalidity and Suicides

    An explanation of what drives a lot of EPO veterans to depression and sometimes even suicide



  21. The Appeal Board (PTAB) and Federal Circuit (CAFC) Maintain Good Pace of Patent Elimination Where Scope Was Exceeded

    The Court of Appeals for the Federal Circuit (CAFC) continues to accept about 4 out of 5 decisions of the Patent Trial and Appeal Board (PTAB) and the US Supreme Court (SCOTUS) refuses to intervene



  22. Software Patents Are Ebbing Away, But the “Swamp” Fights Back and Hijacks the Word “Fix”

    The club of patent maximalists, or those who profit from excess prosecution and legal chaos, isn't liking what has happened in the United States and it wants everything reversed



  23. Report From Yesterday's Debate About the European Patent Office (EPO) at the Bavarian Landtag

    A report of the EPO debate which took place at the Bavarian Landtag yesterday (21/2/2017)



  24. Links 22/2/2017: Wine-Staging 2.2, Nautilus 3.24

    Links for the day



  25. French Politician Richard Yung Tells the Government About Abuses at the European Patent Office (EPO)

    The subject of EPO scandals has once again landed in French politics, just a couple of months since it last happened



  26. The Sickness of the EPO – Part II: Background Information and Insights

    With a privatised, in-house (sometimes outsourced and for-profit) force for surveillance, policing, justice, public relations and now medical assessment (mere vassals or marionettes of the management) the EPO serves to show that it has become indistinguishable from North Korea, where the Supreme Leader gets to control every single aspect (absolutely no separation of powers)



  27. EPO Cartoon/Caricature by KrewinkelKrijst

    A new rendition by Dutch cartoonist and illustrator KrewinkelKrijst



  28. Inverting Narratives: IAM 'Magazine' Paints Massive Patent Bully Microsoft (Preying on the Weak) as a Defender of the Powerless

    Selective coverage and deliberate misinterpretation of Microsoft's tactics (patent settlement under threat, disguised as "pre-installation of some of the US company’s software products") as seen in IAM almost every week these days



  29. The Sickness of the EPO – Part I: Motivation for New Series of Articles

    An introduction or prelude to a long series of upcoming posts, whose purpose is to show governance by coercion, pressure, retribution and tribalism rather than professional relationship between human beings at the European Patent Office (EPO)



  30. Insensitivity at the EPO’s Management – Part VII: EPO Hypocrisy on Cancer and Lack of Feedback to and From ECPC

    The European Cancer Patient Coalition (ECPC), which calls itself "the largest European cancer patients' umbrella organisation," fails to fulfill its duties, says a source of ours, and the EPO makes things even worse


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts