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 30/6/2015: Linux Mint 17.2, OpenMandriva

    Links for the day



  2. Techrights Confirmed as a Target of EPO Surveillance, With Help From Control Risks Group (CRG)

    Unveiling the cloak of secrecy from long-term surveillance by the European Patent Office (EPO) and a London-based mercenary it hired, bypassing the law



  3. Google's Fight to Keep APIs Free is Lost, Let's Hope Google Continues Fighting

    SCOTUS refuses to rule that APIs cannot be considered copyright-'protected', despite common sense and despite Java (which the case is about) being Free/libre software



  4. Patent Trolls in the Post-Alice World

    A round-up of news about patent trolls in the United States, some of whom are are doing well and some of them not as well



  5. DDOS Attacks Against Techrights

    Information about some of the most recent DDOS attacks against this Web site and the steps to be taken next



  6. The Patent System Not What it Used to be, Large Corporations and Patent Lawyers the Principal Beneficiaries

    A look at some recent patent stories and what can be deduced from them, based on statistics and trends



  7. After Intervention by the Council of Europe Comes a Detailed Summary of the Situation in the European Patent Office (EPO)





  8. IRC Proceedings: May 31st - June 27th, 2015

    Many IRC logs



  9. Links 28/6/2015: Manjaro Linux Cinnamon 0.8.13, VectorLinux 7.1

    Links for the day



  10. Williamson v. Citrix Online (at CAFC) Reinforces Alice v. CLS Bank (at SCOTUS) in Crushing Software Patents

    More patent news from the United States, again serving to indicate that software patents over there are getting weak (harder to defend in court or acquire from the patent office)



  11. Proskauer Rose LLP is Cherry-Picking Cases to Make Software Patents Seem Eligible Despite Alice v. CLS Bank

    Naming and shaming those who are trying to reshape the consensus despite a rather consistent pattern of software patents being rejected



  12. IAM Biased: How IAM 'Magazine' Glorifies Patent Stockpiling

    A look at the bias of one of the most overzealous sites for and by patent lawyers



  13. PATENT Act No Longer in the News... and That's Just Fine

    Putting the PATENT Act aside for the time being, for it has little or no impact on the really problematic patents



  14. The Latest Lies From Microsoft's PR Apparatus/Public Face, Mr. Nadella

    Having spread the outrageous lie that “Microsoft loves Linux” (whilst obviously attacking it in many ways), Microsoft's CEO (essentially Bill Gates' right-hand man) says Microsoft is “one of the biggest contributors to Linux kernel” (because of proprietary software it tries to contaminate it with while violating the terms of the GPL)



  15. Microsoft Jack (Schofield) Promotes Microsoft's Proprietary Lock-in and Calls People Who Recommend Free/Libre Software 'Trolls'

    Jack Schofield, writing for a Bill Gates-funded paper despite claiming to have retired, promotes Microsoft Office and insults all those readers who do not agree with him



  16. The Council of Europe Slams the EPO as Political Pressure Grows for EPO Management to Obey the Law

    Battistelli et al. come under yet more fire as politicians -- many of whom from Battistelli's home country -- become better informed of the EPO's management fiasco, abuses, and scandals



  17. Operating Systems Usage Based on Technical Site Statistics

    ome numbers to show what goes on in sites that do not share information about their visitors (unlike Windows-centric sites which target non-technical audiences)



  18. Links 27/6/2015: Wine 1.7.46, SparkyLinux 4.0

    Links for the day



  19. Proprietary Software on Top of Proprietary Software (AV on Windows) Only an Illusion of Security

    Remarks on the recent revelations about code and communication interceptions targeting insecurity firms and Microsoft's claim that 'transparency' alone would be enough to assure security



  20. The EPO's Circus of Nepotism, Corporatism and Gross Abuse is Promoting the Unitary Patent

    The shameful management of the EPO, which Benoît Battistelli constructed based on his nefarious self-serving agenda, keeps pushing forth in a direction that greatly harms European citizens while mistreating the EPO's technical staff (scientists and examiners)



  21. Links 26/6/2015: Ardour 4.1, GNOME 3.17.3 Released

    Links for the day



  22. An Estimated 1,000 EPO Staff in Munich Demonstrated Against EPO Management Yesterday Afternoon

    Earliest coverage of yesterday's protest against EPO corruption and abuses



  23. Microsoft Windows So Insecure That Even Fonts Are Remotely Exploitable

    Windows userbase is once again under serious threat and high risk because something as simple as fonts (rendering of text/pixels on the screen) isn't done securely in Windows



  24. Microsoft is 'Buying' the Media Ahead of Vista 10 Launch

    Signs serve to indicate that Microsoft is already tightening its grip on technology news sites, ensuring that they give Microsoft disproportionate levels of coverage



  25. DockerCon 2015 Infiltrated by Microsoft

    DockerCon gives room to Microsoft propagandists who want to divert the audience's attention from secure GNU/Linux focus to proprietary Windows with back doors and surveillance



  26. Links 25/6/2015: Docker Focus, NVIDIA Opening Slightly

    Links for the day



  27. The Lie or the Fiction of Microsoft Tolerating GNU/Linux

    The 'Microsoft loves Linux' nonsense cannot be put to rest, as that tired old lie keeps resurfacing in the media



  28. Microsoft is Again Demonstrating That It is Not Interested in Making Windows Secure

    Microsoft decides to leave Windows with flaws in it, claiming that fixing the flaws would not be worth Microsoft's resources



  29. Not Only is Vista 10 Not Free, It is Getting More Expensive, According to the Taiwanese Press

    More proof that Microsoft charges quite a lot for Vista 10 (at OEM level), despite the perpetual deception about costs



  30. EPO Protest in Munich and Growing Unpopularity of EPO Management, Media Manipulation by the Management

    Poll shows that the European Patent Office (EPO) comes under fire for its media strategy which involves wasting taxpayers' money on fake/organic media coverage that glorifies the EPO


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