Saba Software CEO to reimburse company in SEC accord

Reuters News
Posted: Sep 24, 2014 12:16 PM

(Reuters) - The chief executive of Saba Software Inc <SABA.PK> has agreed to repay his company $2.57 million of bonuses, incentive pay and stock sale profits as part of a settlement with the U.S. Securities and Exchange Commission over an accounting fraud, the regulator said on Wednesday.

Babak "Bobby" Yazdani, the chief executive, was not charged with misconduct, and neither admitted nor denied the SEC's findings against Saba, which agreed to a $1.75 million fine.

The "clawback" provision of the Sarbanes-Oxley corporate governance law can compel executives to return money to their companies, for the benefit of shareholders, that they received while shareholders were being misled.

According to the SEC, Saba overstated pre-tax earnings by about $70 million from October 2007 to January 2012 because of a scheme in which timesheets were falsified so that the company could hit quarterly revenue and margin targets.

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(Reporting by Jonathan Stempel in New York)