Offering stock options that couldn’t be cashed in for two or three years was key to retaining employees with the Broadcom business in its first years, Broadcom co-founder Henry Samueli testified Tuesday during the fraud trial of the company’s chief financial officer.
“It was a wonderful retention tool,” Samueli, a Newport Beach billionaire, testified on Tuesday during William Ruehle’s trial.
Samueli testified in Ruehle’s defense that he came highly recommended as a potential hire by every Wall Street banker he talked to, and was widely known as a man of unshakable integrity.
Ruehle and Samueli were among company executives charged with federal crimes for allegedly lying to the Securities and Exchange Commission (SEC) about stock options offered to company employees. Broadcom executives allegedly gave employees stock options, but dated them to past dates when the price was lower so when they were cashed in, the employee would get a bigger profit.