Is Something Rotten At Apple?
Steve Jobs, chief executive for Apple Computer received $7.5 million in stock options in 2001 without the approval of the company’s board of directors. Records that show a full board meeting had taken place, as is Apple’s policy turn out to have been falsified.
The Securities and Exchange Commission is looking into the matter and will decide if the case merits pursuing. Apple has said that Jobs was aware of backdating but did not profit from the stock options.
Because of the ongoing investigation the company has delayed filing its annual report with the SEC. They may have to restate earnings from prior periods to allow for the options. Apple is supposedly set to release the report before the end of the week. The report could give insight to any wrong doings as well as what degree of involvement Jobs may have had.
A report in the Recorder, a San Francisco legal newspaper, said that Jobs had hired his own attorney in the matter. In October Apple’s internal investigation found that Jobs had little involvement with the backdating issue. He was aware of the backdating taking place but did not fully understand the potential for an accounting issue according to the company.
Jobs later gave up his stock options that were in question and did not receive financial gain. He then received restricted stock from the company.
Apple stock fell six percent yesterday but by the days end had rebounded to close at $81.52.