Third time’s the charm…

July 14, 2006

Why did it take Triquint Semiconductor (TQNT) three times to get the details of vp of sales Todd DeBonis’  compensation correct? In this 8-K filed yesterday, which announced the hiring of former Intel (INTC) vp Timothy Dunn, Triquint said it forgot to include $195,525 in moving expenses that DeBonis received in 2004. That was the second big oops for Triquint when it came to DeBonis. On June 2, Triquint filed this 8-K which noted that it forgot to include $146K in sales bonuses and commissions for 2005 when it filed its proxy back in April. So in the 2006 proxy, it only looked like DeBonis had received a measly bonus of $492, when the real number was, oh, roughly 300 times larger. Not to mention that the moving allowance was significantly larger than that offered to other Triquint employees, including CEO Ralph Quinsey who received around $80K to cover his moving expenses in 2002 and 2003.

Sure, everyone makes mistakes. But losing track over this kind of money calls into question the company’s internal controls. If they’re struggling with the relatively simple summary compensation chart, what does that say about some of the more complicated numbers that the company has to report?

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