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 18/1/2017: Red Hat's OpenShift 3.4, Mozilla's New Logo/Branding

    Links for the day



  2. Union-Busting Action by Team Battistelli Takes Heavy Toll, Techrights Will Continue to Expose EPO Injustices to the World

    The Staff Union of the European Patent Office, SUEPO, which faced unprecedented and probably illegal (based on local laws) attacks, is being weakened by the worst President ever, whose own management team seems to be collapsing along with the institution he is destroying in just a few years



  3. A Lot More Fake News About the UPC, Trying to Convince People That the UK is Ratifying (It's Not, It Cannot)

    Response to some of the latest misleading (self-serving) whispers about the fate of the Unified Patent Court (UPC), which is in a deadlock due to Brexit



  4. Rumours Suggest That EPO Management is Aware of Decline in Patent Quality and is Thus Actively Lying About it to the Media/Public

    Whenever Battistelli brags about patent quality he may be consciously and deliberately lying through his teeth if the latest rumours are correct



  5. Links 17/1/2017: GIMP Plans, New Raspberry Pi Product

    Links for the day



  6. Resumption of EPO Propaganda ('Meet the President') Officially Starts Tomorrow

    Yet another one of these foolish 'Meet the President' stunts, scheduled to take place tomorrow morning



  7. Caricature: Battistelli's New Year's Resolution (More EPO Lies)

    The latest cartoon being circulated within the European Patent Office (EPO)



  8. Donald Trump Gives New Hope to Patent Aggressors and Patent Trolls

    Pessimism about the prospects of patent progress or patent reform in an age of staunchly pro-business Conservatives and glorification of protectionism



  9. More Fake News About the Unified Patent Court (UPC) Based on Lobbying Tactics From Bristows UPC and the Preparatory Committee

    Unified Patent Court (UPC) lobbying has gotten so bad that it now infiltrates general media outlets, where people are asked to just blindly assume that the UPC is coming and is inevitable, even though it's clearly in a limbo and is unlikely to see the light of day



  10. EPO Totally Silent for a Month, But Deep Inside There Are Serious Cracks

    The situation at the EPO seems to be pretty grim, even at the top-level management, and the EPO has gone into permanent silence mode



  11. Links 16/1/2017: Linux 4.10 RC4, Linux Mint 18.1 'Serena' KDE Edition Beta

    Links for the day



  12. 'Financial Director' Publishes Fake News About the Unitary Patent (UPC)

    Response to some of the latest UPC propaganda, which strives to misinform Financial Directors so as to enrich the author and his firm



  13. Independent and Untainted Web Sites About Patents Are Still Few and Rare

    Commentary about news sources that we rely on, as well as the known pitfalls or the vested interests deeply ingrained in them



  14. The 20% Rule: Patent Trolling Suffers Double-Digit Declines and Patent Troll Technicolor is Collapsing

    Significant demise or total catastrophe for the modus operandi (method) of going after companies with a pile of patents and threats of litigation



  15. US Supreme Court Did Not End Apple's Patent Disputes Over Android (Linux), More Cases Imminent

    An overview of some very recent news regarding the highest court in the United States, which has been dealing with cases that can determine the fate of Free/Open Source software in an age of patent uncertainty and patent thickets surrounding mobility



  16. Links 15/1/2017: Switching From OS X to GNU/Linux, Debian 8.7 Released

    Links for the day



  17. Number of New Patent Cases in the US Fell 25% Last Year, Thanks in Part to the Demise of Software Patent Trolls

    Litigation and prosecutions that rely on patents (failure to resolve disputes, e.g. by sharing ideas, out of court) is down very sharply, in part because firms that make nothing at all (just threaten and/or litigate) have been sinking after much-needed reform



  18. America Invents Act Improved Patent Quality, But Right Wingers Threaten to Make It Worse Again

    The past half a decade saw gradual improvement in assessment of patents in the United States, but there is a growing threat and pressure from the patent microcosm to restore patent maximalism and chaos



  19. PTAB -- Not Deterred by Courts -- Continues to Invalidate a Lot of Software Patents

    The Patent Trial and Appeal Board (PTAB) continues to make progress reforming the patent system by eliminating a lot of patents and setting an example (or new standards) for what is patent-eligible after Alice



  20. EPO Abuses Come Under Fire From Politicians in Luxembourg

    Luxembourg is the latest nation in which concerns about the EPO's serious abuses are brought up not only by the media but also by politicians



  21. Constitutionality as a Barrier and Brexit Barriers to UPC Keep the Whole Pipe Dream Deadlocked

    The UPC is still going nowhere fast, but the demise (or death) of the UPC as we know it must not be taken for granted



  22. Links 14/1/2017: Wine 2.0 RC5 and AryaLinux 2017 Released

    Links for the day



  23. Links 13/1/2017: Linux 4.9.3 and Linux 4.4.42

    Links for the day



  24. Brexit Means No UPC (Unified Patent Court)

    Now that Jo Johnson, Boris Johnson's brother, is officially declared the new minister for intellectual property in the UK everything that Lucy Neville-Rolfe wrote is as solid as paper bag on a rainy London day



  25. Patent Trolls and Software Patents: CloudTrade, Patent Practitioners Density, and Via Licensing

    Software patents armament from a British company, charted concentration of the patent microcosm in the United States, and US-leaning patent trolls that prey on China



  26. Patent Maximalism -- Like Copyright Maximalism -- Relies on Misconceptions and Mass Deception

    The latest examples of discussions about patent scope, courtesy of those looking to benefit financially by pushing such monopolies to the max



  27. Software Patents Still Promoted by IBM and Its Lobbyist (and Former Employee) David Kappos, in Defiance of Much-Needed US Patent Reform

    While the corporate media celebrates IBM as though it's some kind of 'champion' for hoarding patents that it then uses to attack companies which actually grow



  28. Brexit/Trump Effect: Patent Systems With Institutional Corruption and Nepotism

    Rumours about Britain's head of patents (and copyrights etc.) being the brother of the Brexit campaigner and Foreign Minister; meanwhile, on the other side of the Atlantic, rumours suggest that the corrupt judge Rader might be the next head of patents in the United States



  29. Links 11/1/2017: X.Org Server 1.19.1, GitHub's Atom 1.13

    Links for the day



  30. The Patent Microcosm is Already Sucking up to Donald Trump in an Effort to Enrich Itself at Everyone's Expense

    Four new examples of patent maximalists embracing/adopting the pseudo-populist slogan to advance their goals of increasing litigation (which they profit from) and undermining PTAB (which made patents great in the quality sense)


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