Jury Convicts HR Exec
Another HR executive is in hot water over her role in an alleged stock option backdating scheme.
Stephanie Jensen, former VP of HR for San Jose-based Brocade Communications Systems, was found guilty of conspiracy and falsifying records. Jensen allegedly falsified offer letters and other personnel documents as part of a scheme to lock in lower stock option strike prices.
Jensen contended that her lack of a finance background made her unaware of the illegality of the scheme and that she merely followed practices established before she started at Brocade. Prosecutors, however, offered statements made by Jensen and others evidencing that she was well aware of the scheme and its implications.
Jensen’s subordinates testified that she told them not to communicate by email about the company’s questionable stock option practices. One employee testified that when he questioned Jensen about the options practices she responded: ”If they ever come after us, they will come after me and Greg.”
“Greg” is Greg Reyes, Brocade’s former CEO. Jensen’s words proved to be prophetic: prior to her conviction, Reyes was convicted on ten counts, including deception of Brocade’s auditors and approving false financial statements.
Jensen’s sentencing hearing is March 12. She faces up to five years in prison on the conspiracy charge and 20 years on the falsification charge.
The lesson? HR leaders have a tremendous opportunity to influence others to do right — or to do wrong. As we said last week in connection with another guilty plea by an HR exec, the lesson is simple: failing to do the right thing as an HR leader can land you in jail.
