Mark A. King, Affiliated Computer Services (ACS) chief executive and president, and Warren D. Edwards, the company’s chief financial officer, on Monday tendered their resignations after a probe into past stock options practices at the information technology services company revealed that both men had violated its code of ethics, the Associated Press reports via BusinessWeek.com.Fifty-two-year-old Lynn Blodgett, ACS’ chief operating officer, was chosen to immediately replace King as CEO and president; and 49-year-old John Rexford, executive vice president of corporate development, is the company’s new chief finance executive, according to the AP.King and Edwards are expected to stay with the firm until June 30, 2007, to assist with the transition, the AP reports.In response to both a pending Securities and Exchange Commission (SEC) probe and a subpoena to appear before a grand jury issued by the U.S. attorney for the Southern District of New York, ACS in September delayed filing its annual financials and said it would launch an internal investigation into possible backdating of stock options going back to 1994, according to the AP. Backdating is when a firm assigns past values to stock that are higher than current values to make them look more appealing to investors. The internal probe discovered that along with former CEO Jeffery Rich, King and Edwards, only one additional existing management staffer was aware of the backdating, according to the AP.ACS plans to continue its investigation, and it estimates the non-cash compensation costs associated with the backdating of options to be around $51 million, not including a number of tax-related expenditures, the AP reports. The news comes at time when a large number of firms—many of which are technology companies—are under investigation by the SEC and other authorities for possible stock options backdating.Related Links: Apple: CEO Steve Jobs Knew of Backdating Three Ex-Brocade Execs Charged in Stock Options Probe Big Changes at McAfee in Wake of Stock Options Scandal Novell Launches Internal Stock Options ProbeCheck out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content feature 4 remedies to avoid cloud app migration headaches The compelling benefits of using proprietary cloud-native services come at a price: vendor lock-in. Here are ways CIOs can effectively plan without getting stuck. By Robert Mitchell Nov 29, 2023 9 mins CIO CIO CIO case study Steps Gerresheimer takes to transform its IT CIO Zafer Nalbant explains what the medical packaging manufacturer does to modernize its IT through AI, automation, and hybrid cloud. By Jens Dose Nov 29, 2023 6 mins CIO SAP ServiceNow feature Per Scholas redefines IT hiring by diversifying the IT talent pipeline What started as a technology reclamation nonprofit has since transformed into a robust, tuition-free training program that seeks to redefine how companies fill tech skills gaps with rising talent. By Sarah K. White Nov 29, 2023 11 mins Diversity and Inclusion Hiring news Saudi Arabia will host the World Expo 2030 in Riyadh By Andrea Benito Nov 28, 2023 4 mins Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe