Stec CEO Manouch Moshayedi Resigns After Insider Trading Charges

In a SEC filing, STEC Inc.
announced on September 17, 2012 that Manouch Moshayedi, its chairman
CEO, notified the board that he is stepping down from his positions
pending resolution of a civil complaint filed against him by the the SEC
on July 19, 2012 .

 He will remain with the company, assuming the title of founder and continuing to serve as a member of the board.

The board elected Mark Moshayedi, currently the president, COO, CTO and
member of the board, to succeed Manouch Moshayedi as interim CEO. He
will also continue as president. His current annual compensation will
not change.

The board also elected Kevin Daly, presently director, to the position of interim chairman.

Brother of Manouch Moshayedi, Mark Moshayedi, 50, has served as a
director since March 1992, its COO and CTO since January 1995, and its
president since March 2007. From June 1994 to December 1994, he served
as president of R&D. From March 1992 to May 1994, he held various
positions with STEC, including SVP. He also served as the company’s
secretary from January 1995 through March 2012. Mark Moshayedi is the
brother of Manouch Moshayedi. Mark Moshayedi was not selected as CEO
pursuant to any arrangement or understanding with any other person,
according to STEC.

Mark Moshayedi has a one-third ownership interest in each of MDC Land
Corporation and MDC Land LLC, and he is a director, executive officer
and manager of each of these privately held companies. STEC leases from MDC two buildings that serve as the company’s corporate headquarters.
The monthly base rent for each of these buildings during 2011 was
approximately $21,000 and $35,000 per month, respectively, which is
subject to biennial adjustment based changes in the Consumer Price Index
through the expiration of the lease in July 2017. But the company
believes that these leases with MDC are on terms no less favorable to
the company than could be obtained from an unaffiliated third party.

Read also:
PricewaterhouseCoopers Resigned as Stec’s Auditor
Is it in relation with insider trading charge vs. CEO Manouch Moshayedi?
Stec CEO Moshayedi Files Judicial Answer for Insider Trading
In response SEC civil complaint filed last month
SEC Charges Stec Chairman and CEO Manouch Moshayedi
With insider trading