Steve jobs back dating stock options
The company says that 15 stock option grants during that time period appear to have been backdated, but that no members of Apple's "current management team" engaged in any misconduct around the options.However, Apple says there are "serious concerns" surrounding actions taken by two former officers in connection to the problems.All three companies will be forced to restate earnings for the periods in question, which can be a laborious and time-consuming process.It is possible that Apple could face more than a slap on the hand from the SEC, as in some instances, backdating and springloading options can result in criminal charges of fraud.The companies would all give the option to the employee to buy the company stock at an advantageous price, usually the lowest price within the year that the employee was hired.
I’ve excerpted some of the juicier bits from the deposition below. On coming back to Apple and becoming CEO in 1997: Q: And I guess, just to go back in time then, I want to just try to understand a little bit the transition from having the title consultant to becoming CEO. A: Well, when Apple bought Ne XT, Apple was pretty messed up.
Such practices are frowned upon by the Securities and Exchange Commission.
Apple's practice of backdating stock options began in 1997 and continued into January 2002.
The deposition was never made public until Forbes published it on Friday, after obtaining it through a Freedom of Information Act request.
(Full deposition embedded below) Jobs explains his reasoning for why he asked the board for mega grants of options for both himself and his top executives, but claims ignorance of the mechanics of how that was done after the board approved the grants themselves.
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Apple Computer has concluded an internal investigation into backdated stock options and found that while CEO Steve Jobs was aware of the practice, he did not personally benefit from it.