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 17/10/2017: KDE Frameworks 5.39.0, Safe Browsing in Epiphany

    Links for the day



  2. Judge Bryson Rules Against Allergan After It Used Native American Tribes to Dodge Scrutiny of Patents (IPRs); Senator Hatch Does Not Understand IPRs

    Having attempted to dodge inter partes reviews (IPRs) by latching onto sovereign immunity, Allergan loses a key case and Senator Hatch is meanwhile attempting to water down IPRs albeit at the same time bemoaning patent trolls (which IPRs help neutralise)



  3. Rumours That António Campinos Initially Had No Competition at All (for Battistelli's Succession) Are Confirmed

    Succession at the EPO (mostly French) shows that there's little room for optimism and Battistelli's people are too deeply entrenched in the upper echelons of the EPO



  4. EPO Stakeholders Complain That the New Chairman Does Not Grasp the Issues at the EPO (or Denies These)

    Some information from inside the EPO’s Administrative Council, whose Chairman is denying (at least to himself) some of the core issues that render the EPO less competitive in the international market



  5. Another Misleading Article Regarding Patents From Rana Foroohar at the Financial Times

    In an effort to promote the agenda of patent maximalists, many of whom are connected to the Financial Times, another deceiving report comes out



  6. Monika Ermert's Reports About the Crisis at the EPO and IP Kat's Uncharacteristically Shallow Coverage

    News from inside the Council shows conflict regarding the quality of European Patents (granted by the EPO under pressure from top-level management)



  7. Patent Troll VirnetX a Reminder to Apple That Software Patents Are a Threat to Apple Too

    VirnetX, a notorious patent troll, is poised to receive a huge sum of money from Apple and Qualcomm is trying to ban Apple products, serving to remind Apple of the detrimental impact of patents on Apple itself



  8. Links 16/10/2017: Linux 4.14 RC5, Debian 9.2.1, End of LibreOffice Conference 2017

    Links for the day



  9. The Systematic Erosion of Workers' Rights and Holidays at the EPO Goes Years Back

    The legitimacy of the staff's concerns at the EPO, having seen basic labour safeguards being shredded to pieces by Battistelli for a number of years (predating even the escalation of the conflict)



  10. Articles in English and German Speak About the Decline in Quality of European Patents (Granted by the EPO)

    Heise and The Register, two sites that have closely watched EPO affairs for a number of years, speak about the real problem which is declining patent quality (or rushed examination) -- a recipe for frivolous litigation in Europe



  11. Software Patents and Patent Trolls Not a Solved Issue, But the US is Getting There

    A media survey regarding software patents, which are being rejected in the US in spite of all the spin from law firms and bullies such as IBM



  12. US Patent Trolls Are Leaving and the Eastern District of Texas Sees Patent Cases Falling by More Than Half

    The decline of patent aggression in the US and the patent microcosm's response to Justices, having ruled in TC Heartland, curtailing patent trolls



  13. Qualcomm's Nightmares Are Getting Worse as Antitrust Questions Are Raised and Assessed

    Qualcomm is getting itself deeper in trouble as fines pile up and its multi-billion dollar dispute with Apple isn't getting it anywhere



  14. Forget About Apple; Two of the Leading Phone Makers (Samsung and Huawei) Are Bickering Over Patents

    Massive Android OEMs, Huawei and Samsung, are in a big patent dispute and this time, for a change, China is a legal battleground



  15. Tim Heberden From the Glasshouse Advisory is Throwing Stones in a Glasshouse to Create Patent Litigation

    IAM's latest lobbying, aided by the patent microcosm, for a climate of feuds and disputes (to line the pockets of the litigation 'industry')



  16. Access to Medicine is More Important Than Patents

    Some of the latest news about patents that impede/deny access to crucial medication; strategic litigation from the generics sector, seeking to invalidate patents and then offer low-cost alternatives



  17. Links 14/10/2017: Windows Breaks Dutch Law, Wine 2.19 Released

    Links for the day



  18. The Patent Trial and Appeal Board (PTAB) Supported by Congress, a Federal Judge, Soon to be Supported by the Supreme Court Too?

    The Patent Trial and Appeal Board is still widely defended, except by the patent microcosm which likes (and profits from) patent trolls and litigation Armageddon



  19. Patents Are Turning BlackBerry and Nokia, Which Used Android, Into Anti-Android Fronts That Tax Android OEMs

    The Canadian BlackBerry has sued BLU in the US only to compel it to pay 'protection' money; Nokia's patents are being scattered to trolls, which are doing something similar (without risking litigation themselves)



  20. The Unified Patent Court (UPC) is Rotting Like the European Patent Office

    The Unitary Patent litigation pipe dreams (or prosecution/trolling fast lane), which Battistelli's EPO long relied on, turn out to be the road to nowhere



  21. Lying and Faking Now a Standard Procedure at the European Patent Office

    The European Patent Organisation (EPO) under the leadership (or chairmanship) of Christoph Ernst continues to relay lies from Battistelli's Office, SUEPO rejects these, the Office lies about SMEs, prioritises Microsoft (again), and probably buys fake Twitter "followers"



  22. Links 13/10/2017: X.Org Server 1.19.5, pfSense 2.4, Final Stages of Ubuntu 17.10

    Links for the day



  23. Truly Terrible 'Journalism' About António Campinos Boils Down to Lobbying and Agenda-Pushing

    The expectedly shallow coverage of the appointment (succession) of Battistelli's French pick, which will likely change nothing of significance at the European Patent Office (EPO)



  24. Under Christoph Ernst, the Council is Just a Megaphone of Battistelli's EPO, Including on Patent Quality

    The Administrative Council of the EPO does not appear to be interested in a serious, adult, scientific debate about the quality of European Patents (EPs) and is instead relaying lies from Benoît Battistelli



  25. Links 12/10/2017: Cutelyst 1.9.0, Qt Creator 4.5 Beta

    Links for the day



  26. The Hogwash Begins: Patent Microcosm's Media Pretends Campinos is Anything But Battistelli's French Succession Plan

    A survey of media coverage regarding António Campinos, the French person whom Benoît Battistelli selected as his successor at the EPO



  27. Patent Quality at the EPO (European Patents) is Slipping While Battistelli's Office Boasts “Expansion of Early Certainty” (Even Worse)

    The EPO is staring down the abyss as high-level EPO management, quite frankly as usual, looks for new ways to further exacerbate patent quality (for superficial gains in the number of granted patents) rather than improve it



  28. Former Microsoft Employee Explains Why Microsoft 'Embrace' of GNU/Linux and Free/Libre Open Source Software is Like W3C Entryism

    Microsoft's latest moves are "EEE" that "concern" him, according to this new video



  29. Links 11/10/2017: Krita 3.3.1, KDE Plasma 5.12 Plans

    Links for the day



  30. China is Getting Full of -- and Fed Up With -- Patent Trolls

    In China too, as expected, local companies are becoming rather disgusted by a wave of patent trolls, enabled by misguided officials and bad advice from the likes of IAM (which sets up events in China at the behest of the patent microcosm)


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