McAfee chief quits over stock option scandal

McAfee said that George Semenuk will be "retiring" from his position

An investigation into the back dating of stock options has prompted McAfee to remove chief executive George Semenuk and president Kevin Weiss.

The security firm said that Semenuk will be "retiring" from his position and that Weiss has been "terminated". Dale Fuller has been appointed interim chief executive and president. Charles Robel will take over as chairman.

"I regret that some of the stock option problems identified by the Special Committee occurred on my watch," said Semenuk while announcing his retirement from the position after six years.

The blood-letting follows an investigation into the company's stock practices over the past 10 years that focused on 'back dating' options.

This involves basing stock prices on an earlier date than when the option was granted, allowing the recipient to make more money.

The Securities and Exchange Commission (SEC) has recently begun a crackdown on the back dating of stock options.

Apple revealed details last week of an internal investigation into a stock option back-dating scandal, and Mercury Interactive is in the process of restating its financials as a result of irregularities with its executive stock option programme. 

Along with the loss of Weiss and Semenuk, McAfee said that it will be restating earnings reports previously filed with the SEC. The company estimates that the corrections could affect past earnings by $100m to $150m.