Midnight Journal Entry
The Midnight Anniversary Access Anne T. Lawrence, San Jose State University On an clouded afternoon in Portland, Oregon, on Friday, March 28, 2003, Richard Okumoto attentively brash a set of hard-copy accounting abstracts alleged “adjusting anniversary entries” advance out on his desk. He had been appointed arch banking administrator (CFO) of Electro Scientific Industries, Inc. (ESI), a multi-million dollar accessories manufacturer, aloof a few weeks earlier. Okumoto was in the bosom of closing the company’s books for the third analysis of budgetary year 2003, which concluded February 28.
An accomplished controlling who had served as CFO for several alternative technology firms, Okumoto was accustomed with the task, which commonly would be routine. But this time, he acquainted that article was actively amiss. Aback reviewing the company’s contempo results, he had noticed a aciculate dip in accrued liabilities amid the two abode catastrophe May 31 (the aftermost analysis of the 2002 budgetary year) and August 31 (the aboriginal analysis of the accepted budgetary year).
Now, attractive at the abundant anniversary entries his agents had provided, he noticed that several cogent accounting entries had been fabricated about midnight on September 12, 2002. The entries fabricated that September black had decidedly afflicted the company’s after-effects for the analysis catastrophe August 31, 2002, a few canicule afore they were arise to the Securities and Barter Commission. He afterwards recalled: The actuality that the time stamps [on the anniversary entries] were midnight through one o’clock in the morning fabricated me accept they were accepting difficulties closing the quarter.
Not aloof because of accounting difficulties, but because they were accepting difficulties award the adapted answers. My antecedent acknowledgment was, alike accustomed a difficult anniversary close, if the aggregation was alive that backward at night, that wasn’t typical. From the canyon codes adapted by the accounting software, Okumoto could see who had fabricated the entries. They included James Dooley, afresh the company’s acting arch operating administrator and now the CEO, the accumulated controller, and several arch associates of the accounts team. One midnight anniversary access in accurate drew the new CFO’s attention.
The late-night aggregation had wiped out an accrued accountability of $977,000 associated with the advancing amount of retirement and severance allowances to aggregation advisers in Japan, Korea, and Taiwan. That entry, and several abate ones, all of which were favorable to net income, had the accumulative aftereffect of allowing the aggregation to address antithesis of $0. 01 per allotment for the analysis catastrophe August 31, 2002, rather than a loss. Aback he accomplished that, Okumoto recalled, he acquainted “a biconcave activity in my gut. ” He asked himself, “What happened here? At that time of night?
All of the changes in a distinct direction? What’s activity on? ” He was abiding article was not right. RICHARD OKUMOTO Born in 1952, Richard Okumoto was aloft with his four ancestors in a Japanese-American ancestors in a low-income, African-American adjacency that belted the Pepper Street Projects of Pasadena, California. He explained how his parents’ adventures had shaped their outlook: My parents grew up during the abasement years. Dad farmed with relatives, and Mom grew up disposed 3,000 chickens on a three-acre agronomical in Gardena, California.
Shortly afterwards the Pearl Harbor advance by the Japanese, my parents were relocated beneath Controlling Order 9066 [under which bodies of Japanese ancestor on the West Coast were beatific to alteration camps during World War II]. They met and affiliated in a alteration camp. During their incarceration, their families could not accomplish their payments. Dad and his ancestors absent their land, and Mom’s parents absent their craven ranch. Afterwards those experiences, my ancestor was committed to accepting no debt. He congenital our ancestors home in 1955, with the abstraction of advantageous off the accommodation in eight years.
In 1962, Okumoto’s father, who formed as a gardener, landscaper, and salesman of Japanese alternate funds, was disabled in a austere auto accident. Fortunately, by then, he had about paid off the accommodation on their home, so the ancestors was able to survive financially. Afterwards the accident, Okumoto’s mother took a job charwoman homes to admonition abutment her bristles children. Okumoto declared his accord with his mother: She and I had an abnormally abutting bond. Shortly afore my dad’s accident, both her parents had died. I was the one who accurate her through a actual difficult year.
As a result, she consistently brash me abnormally from the alternative kids—almost like an adult. The Okumoto family’s banking bearings afterwards the blow was difficult. Okumoto had active memories of how they coped: Money was actual short. We had to anniversary for every penny. Every week, my mother wrote bottomward in a leather-bound anniversary aggregate she acceptable and aggregate we spent in the household, bottomward to the penny. Every week, from the time I was ten years old, she went through that with me. We lived on a banknote basis. There was no acclaim card, no additional mortgage.
In that situation, allotment became acutely important. Her animadversion to me was, “You can’t accuse [about what you don’t have] unless you accept what’s happening. ” Those were her arena rules. He added this animadversion about his mother’s values: The belief of accomplishing the adapted affair become actual important, because that’s absolutely all you have. [My mother] absolute in me at an aboriginal age, behindhand of what abroad you do, consistently booty the aerial road, consistently do the adapted thing. That has afflicted me throughout my career.
After aerial school, Okumoto abounding San Jose State University, breadth he completed an undergraduate amount in accounting in 1974 and abounding the MBA diplomacy from1975 to 1978. He anon boarded on a awful acknowledged career in finance. Over the abutting two-and-a-half decades, he captivated added amenable roles at a cardinal of high-technology companies in the Silicon Valley, including Fairchild Semiconductor, Novellus Systems, Measurex, Credence Systems, and Photon Dynamics. Okumoto admired a cardinal of managers he had formed for, who had set aerial able and ethical standards for him and his co-workers.
He acquainted advantageous to accept had three aberrant mentors: Woody Spedden, the CEO of Credence Systems; Jim Hefferman, his bang-up at Fairchild and afterwards at Measurex; and Don Waite, the CFO at Measurex who afterwards took over that position at Seagate Technologies. “All three individuals upheld the accomplished integrity,” Okumoto recalled. “Aside from the abstruse training I accustomed from them, I got a able ethical grounding. They would consistently acquaint me to ask myself—what are your obligations to others? ” ELECTRO SCIENTIFIC INDUSTRIES, INC. Electro Scientific Industries, Inc. ESI), the aggregation that Okumoto abutting as CFO in aboriginal 2003, was the second-largest technology aggregation in Oregon, abaft alone Tektronix in size. Based in Portland, the aggregation was founded in 1944 as Brown Engineering to accomplish analysis and altitude equipment. As technology evolved, so did the company’s products. In the 1960s, the firm—by afresh alleged ESI—moved into lasers, and afterwards developed applications of laser technology for the arising semiconductor industry. ESI went accessible on the NASDAQ barter in 1983. In 2003, ESI’s amount business was accouterment absorption assembly accessories to electronics firms.
The aggregation bogus accessories that was acclimated in the assembly of a avant-garde ambit of electronics products, such as computers, cellular phones, home ball systems, automotive electronics, cyberbanking games, and claimed agenda devices. Its articles included avant-garde laser systems, analysis equipment, and packaging systems, amid others. The company’s barter included abounding arch electronics firms, including AMD, Ericsson, IBM, Samsung, Hitachi, Flextronics, Honeywell, and Lucent. Seventy percent of ESI’s sales were alfresco the United States, mainly in Asia and Europe.
The aggregation endemic and operated accomplishment accessories in Portland and Klamath Falls, Oregon, and in Escondido, California, and operated sales offices in abounding countries. In 2002, it active 875 bodies and arise sales acquirement of $167 actor (down from $472 actor the above-mentioned year). Like abounding firms in the electronics industry, ESI was abominably aged by the bread-and-butter abatement that began in 2001. Afterwards accomplishing almanac sales and assets in the budgetary year catastrophe May 31, 2001, the company’s banking after-effects beneath precipitously in FY 2002, as credible in Exhibit A.
Sales and profits had connected to abatement in the aboriginal bisected of FY 2003. Exhibit A: Electro Scientific Industries, Selected Sales and Assets Data, 1998-2002 | 1998| 1999| 2000| 2001| 2002| Net sales| 252,134| 197,118| 299,419| 471,853| 166,545| Net assets (loss)| 22,347| 7,528| 40,860| 99,933| (15,961)| Net assets (loss) per share| 0. 89| 0. 29| 1. 55| 3. 71| (0. 58)| Abstracts accredit to budgetary years catastrophe May 31. All abstracts are accustomed in bags of dollars, except per allotment data. Source: ESI 2002 Anniversary Report. The aggregation acclaimed in its 2002 anniversary report:
In budgetary year 2002, ESI asperous the affliction abatement in the electronics industry in over 30 years…We are administering a absolute analysis of our all-embracing bazaar activity as able-bodied as artefact band strategies to assure that they will accomplish cogent actor allotment over the assured cycles in our industry. To cut costs, the aggregation accomplished a abeyance of its Escondido facility, accumulation its operations in Portland. It bald several underperforming curve of business and approved to advance in areas it saw as able through partnerships and, potentially, acquisitions.
It additionally artlessly explored a alliance with accession abutting in southern California. In aboriginal 2002, Don VanLuvanee, the company’s adept CEO, suffered a achievement and was no best able to serve. The lath appointed David Bolender, the above CEO of Protocol Systems and a administrator aback 1988, to footfall in as acting CEO until it could acquisition a abiding replacement. At that time, the lath additionally animated James Dooley, who had been confined as the firm’s arch banking officer, to the role of acting arch operating administrator to run the company’s circadian affairs.
In December 2002, the lath answer Dooley to the position of arch controlling officer, and Bolender became administrator of the board. (Executives and admiral of ESI alleged in the case, and their positions, are abbreviated in Exhibit B. ) [Exhibit B should arise about here; it is at the end of the file. ] CLOSING THE QUARTER Shortly afterwards Dooley became CEO, Okumoto was recruited as arch banking officer. He started assignment on February 17, 2003. I was aflame about the job. I anticipation it ability be my aftermost one in the industry. The company, management, and employees—all had a continued history of stability.
To me, it was accession airing bottomward the aisle of adamantine work, a beginning adventitious to administer my abilities in cardinal planning and beheading as able-bodied as to apparatus the new Sarbanes-Oxley acquiescence rules. His aboriginal assignment was to adapt for the FY 2003 third analysis close. In reviewing the company’s books for the accomplished several quarters, he anon noticed a aciculate bottomward fasten in the antithesis of accrued liabilities. He acclaimed that actuality for added investigation. In accession to closing the quarter, several alternative items adapted Okumoto’s attention.
Just one anniversary into his new job, on February 24, he got an email from John (“Jack”) Isselmann, Jr. , the accepted counsel, allurement him to advanced to the administrator of the Japanese office, Mike Tetsui, a set of revised assignment rules (terms of employment) for ESI’s Japanese employees. As a newcomer, Okumoto knew little of the accomplishments or why he had been asked to do this, but complied with the accepted counsel’s request, sending on to the Japanese appointment administrator the revised assignment rules. Okumoto accustomed the afterward acknowledgment from Tetsui on March 2: I accept apprehend the proposed assignment aphorism and begin no breadth of [sic] retirement fund.
I do not apperceive what is the ambition of removing that section, but it is a huge appulse on anniversary agent we have…I do not anticipate I can get concents [sic] from [ESI’s Japanese] advisers afterwards reasonable change in retirement benefit. Please let me apperceive how you would like me to proceed. Okumoto recalled: My aboriginal acknowledgment was, “uh-oh. ” There was a big abstract amid what I had been told and Mike’s reply. I had affected that the Japanese had already been abreast of the abandoning of their retirement allowances and agreed to the changes. It was bright they had not.
In a above-mentioned job at Novellus Systems, Okumoto had set up that company’s Japanese operations, and he was acquainted that Japanese assignment rules were commonly filed with the government. Regulators were actual austere about altering any accurate benefits. Accordingly, Okumoto believed that ESI was answerable to pay allowances that had been promised to employees, and he told Isselmann this. Okumoto additionally bidding the assessment that employees, if annoyed with the revised rules, could booty the amount afore the Japanese activity board, and that this would be a “quantifiable event” that would accept to be recorded on the books as a liability.
Isselmann responded that he was alien with Japanese law. On March 4, Okumoto batten with CEO James Dooley about his apropos that the changeabout of allowances for Japanese, Korean, and Taiwanese advisers ability betrayal ESI to litigation, and this could affect the accounting analysis of the event. Dooley acerb disagreed. Okumoto recalled: He told me that aggregate had been austere with everyone. He said there was abounding information. There was abounding disclosure. He emphasized that KPMG [ESI’s alien auditor], the company’s own acknowledged staff, and the lath had all active off on it. He said I should “just get accomplished it. Okumoto was anxious about this conversation, decidedly because the CEO seemed so defensive. On March 11, Okumoto met afresh with Dooley, this time to altercate Okumoto’s accessible presentation to the analysis committee. The new CFO recommended that the aggregation adjournment announcement its third analysis antithesis and recapitulate its aboriginal and additional analysis antithesis to address accurately the $977,000 in liabilities associated with the advancing amount of retirement allowances for its Asian employees. Okumoto explained his appearance that not advertisement these liabilities had abandoned Generally Accepted Accounting Principles.
At that point, Okumoto recalled, Dooley became visibly upset. The CEO—all six feet-six inches and 280 pounds of him—turned an affronted red and told me afresh to aloof get accomplished this. That’s aback I knew that this was activity to be swept beneath the rug. It was bright I was not allotment of the club. Afresh Jim said, “If I’ve got to about-face this entry, I’ll quit. ” THE “MOFO” MEMORANDUM On March 13, Okumoto abounding a affair of the lath of directors’ analysis committee. Additionally present at that meeting, in accession to the analysis lath members, were Dooley, Isselmann, and several arch managers.
At the meeting, Okumoto recommended that the company’s banking statements for the antecedent two abode be restated, and that it appoint an absolute accounting abutting to conduct an analysis of the Asian allowances issue. Dooley countered that anybody had been absolutely abreast of the changeabout and had “bought off” on it. The analysis lath beneath Okumoto’s advancement that an absolute accounting abutting be brought in, but it did absolute Barry Harmon (formerly ESI’s CFO and a affiliate of the analysis committee), Okumoto, and Isselmann to advance an centralized analysis into the matter.
After the analysis lath meeting, Isselmann came into the CFO’s office. Okumoto recalled: He bankrupt the aperture and aloof bankrupt down. He told me that afterwards the allowances changeabout in September he had asked MoFo [Morrison Foerster, an alfresco law abutting on accommodation to ESI] to analysis its legality. MoFo had brash it was actionable to abolish the retirement allowances afterwards agent consent. He said he had anon credible the announcement to Dooley, who had brow-beat him, abashed him, and about boxed him into a corner. I believed this, because in one affair I absolutely saw Jim angle up and belfry over Jack, who was alone 5 feet-6.
I watched Jim about physically beat him. Jack was a adolescent guy, appealing inexperienced, and his job at ESI was his aboriginal in the industry. On his way out, Isselmann handed Okumoto some documents. From the documents, Okumoto abstruse that on October 3, 2002, Isselmann had accounting MoFo, allurement for an assessment on whether or not it would be acknowledged for the aggregation to abolish the Asian employees’ retirement allowances unilaterally. In his letter, Isselmann had acicular out that the rules had been broadcast to advisers but had not been submitted to the accordant government agency.
On October 7, Toshihiro So, a Japanese activity and application advocate affiliated with Morrison Foerster, responded to Isselmann’s request. The MoFo memo, now in Okumoto’s hands, apprehend in part: Retirement allowances are not a acknowledged claim [in Japan]. However, already the aggregation agrees to pay retirement allowances in Rules of Application (even admitting they accept not been submitted to the accordant government agency), the aggregation is answerable to pay them in accordance with the Rules and cannot abolish them at the company’s discretion.
According to Japanese case laws, as a accepted rule, …the denial of ahead acquired rights by anew fatigued up or afflicted assignment rules are [sic] not permitted…[It] is adapted that afore alteration the assignment rules, the aggregation should apprehend and accede the assessment of the accompanying employees. Okumoto was shocked. “This is the smoker gun,” he thought. Investigating further, Okumoto abstruse that although clandestine administration in Japan were not answerable to pay retirement benefits, accomplishing so was advised a acceptable industry practice, and aback 1981 ESI had offered such a anniversary to its advisers there.
Under the rules of application accustomed for ESI’s advisers in Japan, any agent (except executives) who chose to retire afterwards extensive the autonomous retirement age of 60 would be advantaged to a “retirement allowance” of one month’s pay per year of service—in effect, a ancient severance payment. Workers who were involuntarily concluded and the estates of any workers who died afore extensive the age of 60 were additionally advantaged to this benefit. Agnate rules were in aftereffect for the company’s workers in Korea and Taiwan. At the time, ESI had 18 advisers in Japan, 13 in Korea, and 23 in Taiwan, mostly in sales and chump abutment roles.
On March 14, Okumoto alleged an “all hands” affair to acknowledge his antecedent allegation and altercate a aisle forward. Present at the affair were Dooley, Isselmann, Harmon, and several alternative arch managers. The CFO asked anon if there had been abounding acknowledgment and analysis of all actual facts with anniversary to the accretion reversal. Dooley accepted that aggregate had been disclosed. Okumoto did not acknowledgment the MoFo memo, cerebration that Dooley’s acknowledgment adumbrated that he charge accept already arise it to KPMG and the analysis committee. On March 20, Okumoto batten by blast with Mike Tetsui.
The Japanese administrator told the CFO that the advisers had not yet been told that their retirement allowances had been terminated, and he—Tetsui—would abandon afore he would acquaint them that news, which he accepted would be devastating. “As arch of the group,” Tetsui told Okumoto, “I will abatement on my sword. ” On March 21, Okumoto met afresh with Dooley to columnist him on how the changeabout had happened. Dooley was initially “combative. ” As the chat went on, however, he “let his bouncer down” and began talking about what had happened on the night of September 12.
As Okumoto recalled the conversation: Jim told me that he had beatific a banking packet to the lath of admiral above-mentioned to their affair on September 13. Afterwards he had broadcast the packet, but afore the meeting, he was contacted by KPMG, who told him there had been an absurdity in the company’s calculations of its aerial costs, so the banking statements broadcast to the lath were incorrect. ESI’s reportable antithesis were aback abundant beneath than they thought, by as abundant as a actor dollars.
Jim said this was decidedly important because the aggregation was in breezy alliance discussions with a aggregation in southern California. Afresh he said, “No one was allowance me, so I had to admonition myself. ” Aback Jim fabricated that comment, my aboriginal anticipation was, he was attractive for revenue. He was hunting for credits. He was attractive to dispense earnings. That was a audible red flag. Okumoto absolved out of Dooley’s appointment stunned. He alleged his agents calm and asked them to accumulate any affidavit they had on accounting entries on or about September 12.
He additionally began talking with the associates of the accounts aggregation who had alternate in the late-night affair with Dooley and abstruse that a cardinal of bodies on the accounts agents had questioned the allowances reversal, but had not brought it forward. This was constant with a abrogating accent at the top. I would about characterize it as bullying. That’s one acumen why no one stepped forward. That accent at the top created an ambiance breadth bodies absolutely couldn’t allege out. It’s important to attending at the people. It’s agnate to qualitative research. We all do that intuitively.
When I looked at the anatomy accent of a lot of the bodies involved—the amount accountants, the banking analysts—it became credible to me that they were scared. They knew article was wrong, and they capital to say something, but article captivated them back. They reminded me of baffled animals. Growing up in the adjacency I did, I knew what abhorrence looked like. As allotment of his added investigation, Okumoto apart approached the analysis aggregation from KPMG. They told him Dooley had abreast them that the aggregation had accustomed a acknowledged assessment that the changeabout was appropriate, and they had accounted that admonition sufficient.
Okumoto observed: KPMG was new on the account, which they best up afterwards the collapse of Arthur Andersen. They didn’t accept abysmal acquaintance with it. They did not accept all the information. Some of the ally were new. On March 28, a anniversary afterwards he had requested the accordant accounting entries for September 12, his agents assuredly produced the complete affidavit for that date. Now, conduct bottomward into the details, he saw the abounding ambit of the midnight anniversary entries—and who had fabricated them. WEIGHING THE RISKS Over the weekend, Okumoto advised his abutting moves. None of the ndividuals and groups from whom he had approved support—the CEO, the accepted counsel, or the auditors—seemed to allotment his affair about the calmness of the issue. The analysis lath had credible some interest, but had angry bottomward his advocacy to accompany in absolute auditors and seemed to accept the amount could be handled internally. Okumoto was accident sleep, annoying consistently about what—if any—additional accomplish he should take. He had approved to acquaint the key players. From all, he had accustomed the aforementioned message: We don’t see this as a austere problem. Let it go.
Okumoto accomplished the risks of ascent the affair further. He was earning a abject bacon of $250,000, with the achievability of a 100 percent achievement bonus. He reflected: I absolutely accomplished the risks. I knew that if I brought this forward, there was a able likelihood that I would either lose my job, or I would be in an ambiance breadth it would be difficult to operate, so I would accept to leave. The abstraction additionally occurred to him that “I can advantage this for added money and banal if I attending the alternative way. Plus, I can become invaluable to the aggregation with this dirt.
I can anon become allotment of the accustomed central club. ” He had additionally afresh active a arrangement to acquirement a home in the adjacent association of Lake Oswego, and wondered how he would accomplish acceptable on that charge if he absent his job. However, he acquainted analytic defended financially. Afterward the archetype of his parents, Okumoto had formed adamantine to abstain debt and to save for adverse times. He reflected: One of the aboriginal things I ask accompany who are or would like to be CFOs or accepted managers, breadth risks such as this can attempt their careers, is: Are you financially defended abundant to accomplish acceptable decisions?
Because if you aren’t, I can calculation on the actuality that you will accomplish bad decisions aback times of affliction hit. We all allocution about the amount of authoritative acceptable decisions, but as we all know, activity all-overs in. There are bread-and-butter commitments, ancestors commitments, and bodies are sometimes confused to do the amiss thing. As the old aphorism goes, appoint your sales bodies so they are athirst abundant to get the accord done. Appoint your accounts bodies so they are not athirst abundant to do the amiss thing. He added: Fortunately, I was financially in a position breadth I could allow to leave if t came to that. I was single, so I ample the alone being I had to assure was myself. He additionally had a arrangement of accompany in the breadth he acquainted he could about-face to for support. I had a cardinal of accompany in the Portland area, accepting formed there earlier. My above-mentioned aggregation had a analysis of about 1000 advisers in the area. Of these, 500 had formed anon for me. It ability accept been a apocryphal faculty of security, but I acquainted I had a appealing acceptable basement of bodies that I knew. By this time, Okumoto was additionally acceptable anxious about his claimed safety.
Several times, he accustomed bearding letters on his home answering machine. At the time, he was active briefly in accumulated apartment while he shopped for a home, and he acquainted he was decidedly arresting there. But, he added that he was not calmly intimidated. I acquainted that I could booty affliction of myself. I had faced a lot worse threats than this one. As a teenager, I was beggared at gunpoint. I was stabbed in the aback and larboard for dead. I was baffled so abominably that my eyes were bloated shut. I grew up about a lot of concrete violence. Although Okumoto saw risks in demography action, he additionally saw risks in inaction.
He commented: I was anxious about my own acknowledged accountability if I did not booty action. From the point of appearance of the DOJ [Department of Justice] and SEC [Securities and Barter Commission], if you don’t fix the problem, you become the problem. I had abeyant acknowledged risk. As Okumoto advised the risks of both activity and inaction, he reflected on the lath of admiral and what affectionate of acknowledgment he ability apprehend if he approached them directly. (See Exhibit C for a account of associates of the board. ) [Exhibit C should arise about here; it is at the end of the file. ] Dooley was the alone cabal on the board.
There were some old timers on the board—like Barry Harmon, who had beforehand been CFO at ESI. But there were additionally a fair cardinal of independents. Alike admitting I was new at the company, I had a above-mentioned accord with two of the directors. Jerry Taylor, the above CFO at Applied Materials, was a affiliate of the analysis committee. Jerry and I had formed calm 25 years beforehand at Fairchild. So, I had a abiding accord with him. Jon Tompkins, the above CEO of KLA-Tencor, was additionally on the board. I had accepted Jon from Tencor days, breadth he had interviewed me for the CFO position.
As he advised his abutting move, Okumoto anticipation aback to an acquaintance beforehand in his career. As he told the story: I had been in a bearings afore breadth I hadn’t announced up. I had been a CFO for accession accessible company. I was in a bearings in which I had questions on some of the accounting. But it was abutting enough, and I was anxious that I didn’t accept abundant affirmation to abutment my reservations. I had alone been with the aggregation three months. Within four months, we had a above acquirement shortfall. At that time, I fabricated the accommodation not to try to awning up the acquirement shortfall.
But, because we had not alleged it to the absorption of analysts earlier, we absent the aplomb of the Street. At that point, the CEO and I both resigned. I fabricated a accommodation afresh that if I anytime afresh saw article that was close, I would act abundant faster. He additionally anticipation about his mother’s admonition consistently to do the adapted thing, and the admonition of his mentors, who had counseled him consistently to ask the question—what are your obligations to others? Exhibit B: Admiral and Admiral of Electro Scientific Industries, Inc. Alleged in the Case and Their Positions (Listed in Order of Mention)
Richard OkumotoChief Banking Administrator (CFO) James T. “Jim” DooleyActing Arch Operating Administrator (COO), aboriginal 2002 – December 2002 Arch Controlling Administrator (CEO), December 2002 - Don VanLuvaneeFormer CEO David F. BolenderActing CEO, aboriginal 2002 – December 2002 Administrator of the Board, December 2002 - John “Jack” Isselmann, Jr. Accepted Admonition Mike TetsuiManager, Japanese Appointment Barry L. Harmon Above Arch Banking Administrator (CFO) Administrator and Affiliate of the Analysis Lath Gerald F. “Jerry” TaylorDirector and Affiliate of the Analysis Lath Jon D. TompkinsDirector
Exhibit C: Associates of the Lath of Directors, ESI Inc. , March 2003 David F. Bolender, Administrator of the Lath Administrator of the Lath and CEO (retired), Protocol Systems, Inc. ; President of Pacific Power and Light Co. (retired) James T. Dooley, Arch Controlling Administrator Barry L. Harmon (member of the Analysis Committee) Arch Vice President (retired), Avocet Corp. ; formerly, Arch Vice President and Arch Banking Administrator of ESI Keith L. Thomson Vice President (retired), Intel Corp. ; Chair of the Lath of Trustees, University of Oregon Foundation Jon D. Tompkins
CEO and Administrator of the Lath (retired), KLA-Tencor Corp. ; President and CEO of Spectra-Physics (retired) Vernon B. Ryles, Jr. President and CEO (retired), Poppers Supply Co. Gerald F. Taylor (member of the Analysis Committee) Arch Banking Administrator (retired), Applied Materials W. Arthur Porter (Chairman of the Analysis Committee) Dean of the College of Engineering, University of Oklahoma Larry L. Hansen Controlling Vice President (retired), Tylan General, Inc. -------------------------------------------- [ 2 ]. Copyright © 2012 by the Case Analysis Anniversary and Anne T. Lawrence.
The columnist developed this case to accommodate a abject for chic altercation rather than to allegorize either the able or abortive administration of a authoritative situation. An beforehand adaptation of this case was presented at NACRA’s anniversary affair in San Antonio, Texas, October 2011. The columnist acquiescently acknowledges the abetment of Richard Okumoto and the anxious comments of the editor, Deborah Ettington, and three bearding reviewers. [ 3 ]. In 2002, boilerplate anniversary salaries for ESI advisers were $68,000 in Japan, $27,000 in Korea, and $38,000 in Taiwan (in U. S. dollars).
Order a unique copy of this paper