Forrester Research, Inc. (Nasdaq: FORR) today announced that its Chief Financial Officer and Treasurer Warren Hadley has resigned effective immediately. His resignation was the result of initial findings of an internal investigation that uncovered irregularities with respect to an option grant for 5,000 shares made to Hadley in 1999. The initial findings resulted from a voluntary inquiry initiated by the Audit Committee of Forrester’s board of directors. The Audit Committee has hired independent counsel to conduct the investigation, and Forrester has informed the Securities and Exchange Commission.
While the impact of the particular option grant is not financially material, the review is still in the early stages. Forrester is unable to speculate whether, when the investigation is complete, there will be any material impact on current or prior financial statements. Any adjustments that would be required are expected to be non-cash, stock compensation charges and related tax benefit or expense. George F. Colony, chairman of the board and chief executive officer, will also serve as acting CFO while the Company conducts a search for the position.
The Audit Committee proactively and independently undertook the investigation to review stock option dating procedures consistent with best practices in corporate governance and Forrester’s high level of integrity with which it conducts business. Based on its preliminary findings, the Audit Committee hired the law firm of Ropes & Gray LLP in November to conduct an independent investigation of its option grant practices.
Forrester’s commitment to providing high-quality research services to its clients continues without disruption. As the investigation is ongoing, Forrester executives are not able to make any further comment at this time. The Company will provide updates as appropriate as the investigation continues or concludes.