Biomet execs resign
This article was originally published in The Gray Sheet
Executive Summary
CFO Gregory Hartman and Executive VP Daniel Hann announce their retirement March 30 after preliminary findings of an investigation into Biomet's stock option granting procedures over the last 11 years revealed improper accounting. The internal report found that most of the stock options the company issued between 1996 and 2006 were "opportunistically misdated" to take advantage of a lower exercise price and that Hann and Hartman "were or should have been aware of certain accounting and legal ramifications" of the misdating. Biomet, which is in the process of going private, will restate financial statements for 2006 (1"The Gray Sheet" Jan. 1, 2007, p. 6). The firm says the restatements will include a noncash compensation cost of about $50 million between 1996 and 2006. Effective April 11, J. Pat Richardson, former VP-finance at Johnson & Johnson/Cordis, will serve as interim CFO and treasurer until permanent replacements are hired. Separately, the company names former Worldwide President of Cordis Endovascular, Glen Kashuba, president of Biomet Trauma and Biomet Spine on April 4, replacing Charles Niemier, who becomes senior VP-Biomet International and corporate relations...