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Data Software Group WANdisco Requests Ex-CEOs to Repay Bonuses Amidst Fraud Revelation
WANdisco, the data software group recently embroiled in a fraud scandal, is demanding former CEO David Richards and ex-finance chief Erik Miller to return almost £650,000 in bonuses granted last year. The company’s board has taken this action following the exposure of an apparent sales and accounting scam, which severely impacted shareholder value. As per the annual report, the controversial bonuses totaled $832,000 (£647,000), significantly increasing the respective pay packages of Mr. Richards and Mr. Miller.
Shareholders Frustrated Over WANdisco’s Bonus Awards Amidst Plummeting Value
The news of WANdisco’s bonus awards has sparked anger among shareholders, who have suffered substantial losses due to the fraudulent activities revealed in March. The subsequent suspension of WANdisco’s shares led to the appointment of Stephen Kelly, the former CEO of Sage Group, as the interim boss. In an effort to rescue the company, Kelly and the board secured $30m (£23.3m) in new funding. Despite these efforts, shareholder sentiment remains critical, leading WANdisco’s board to demand bonus repayments from former executives.
WANdisco’s Desperate Measures: Interim Chief’s Appointment Made Permanent
As part of the company’s recovery strategy, WANdisco appointed Stephen Kelly as the interim chief executive, after suspending the shares. Following his successful efforts to secure $30m in funding, Kelly’s position has now been made permanent. His expertise and reputation in the industry are expected to bolster WANdisco’s chances of overcoming the financial crisis brought on by the fraudulent activities.
Legality Questions Surround WANdisco’s Demands for Bonus Repayments
While WANdisco’s board has requested the former executives to return their bonuses, it remains uncertain whether they possess legal powers to enforce this action. Nevertheless, the mounting pressure on David Richards to comply with the demand may sway his decision. The company’s reputation and investor trust are at stake, making the return of these significant bonuses a matter of great importance.
WANdisco’s Troubling Related Party Transaction Revealed in Annual Report
WANdisco’s annual report unveiled a concerning related party transaction involving the sponsorship of Sheffield Wednesday FC for the upcoming season. The agreement was made on behalf of EyUp Skills Limited, a company owned by David Richards and his wife, Jane. While the transaction amounted to over $360,000 (£280,000), the report also hinted at an identical sum contingent on specific post-year end outcomes, raising further eyebrows among shareholders and industry observers.
WANdisco’s Tumultuous Journey: From Soaring Valuation to Market Capitalization Plunge
As a data activation platform operating in Sheffield and Silicon Valley, WANdisco experienced substantial success with its shares surging over fivefold in the past year, attaining a market capitalization of more than £890m. However, the exposure of the fraud led to an immediate suspension of its shares, causing its value to plummet sharply. Currently trading at around 97.7p, WANdisco’s market capitalization stands at approximately £103m, reflecting the extent of damage caused by the scandal. Despite the challenges, the company aims to regain stability and restore investor confidence.