Inktomi Loans Its CEO $4.9 Million

Inktomi Corp., an Internet software maker, has loaned Chief Executive David Peterschmidt $4.9million to avoid “negative inferences” that would arise if he sold his stock.

Inktomi, whose shares have dropped 81% in the last year, said in a Securities and Exchange Commission filing that the loans have an annual interest rate of 6%.

The loans and interest are due in two years or earlier if Peterschmidt leaves Inktomi before that time.

Peterschmidt earned $532,935 in salary and bonus in the year ended Sept. 30, 2001, and received options to buy 500,000 shares.

The package is valued at as much as $11.7million over 10 years if the shares rise 10%, according to Inktomi’s proxy statement.

Those options are worthless at today’s share price.

Inktomi shares rose 8 cents to close at $1.49 on Nasdaq.