Apple ‘falsified’ files on Jobs’ options

Discussion in 'Apple, Inc and Tech Industry' started by BuzWeaver, Dec 27, 2006.

  1. BuzWeaver macrumors regular


    Dec 3, 2006
    Atlanta, GA USA
    Apple ‘falsified’ files on Jobs’ options

    By Richard Waters in San Francisco

    Published: December 28 2006 00:21 | Last updated: December 28 2006 00:21

    Steve Jobs, chief executive of Apple Computer, was handed 7.5m stock options in 2001 without the required authorisation from the company’s board of directors, according to people familiar with the matter.

    Records that purported to show a full board meeting had taken place to approve Mr Jobs’ remuneration, as required by Apple’s procedures, were later falsified. These are now among the pieces of evidence being weighed by the Securities and Exchange Commission as it decides whether to pursue a case against the company or any individuals over the affair, according to these people.

    News of the irregularities, which is expected to be revealed in a regulatory filing by Apple before the end of this week, will add to pressure that has been growing on one of Silicon Valley’s most highly-regarded companies since the middle of 2005.

    Apple is among more than 160 companies that have owned up to stock option backdating – handing options to executives and other employees at exercise prices that were set in hindsight at favourable levels – a scandal which has led to the departure of a number of chief executives.

    The latest revelation is likely to add to questions about Apple’s disclosures about its internal investigation into the backdating issue. In October, the company largely exonerated Mr Jobs over the matter, saying that while he had been “aware” of the backdating “in a few instances”, he “did not receive or otherwise benefit from these grants and was unaware of the accounting implications”.
  2. xPismo macrumors 6502a


    Nov 21, 2005
    This storm is getting windy. Lets hope it blows over, so far no names and no action by the SEC... MWSF might be really interesting! :p
  3. GoCubsGo macrumors Nehalem


    Feb 19, 2005
    . As a person versed in financial fraud, I'm going to lean towards one of the non-believers when a person actually writes that. "People familiar with the matter" is who exactly? Some unemployed financial analyst who had nothing better to do than assume the worst based on only half the data? It's like me saying there is fraud in your bank account based on only seeing your check book. There's no way to see what happened without a full picture ie: bank accounts, receipts, etc. Silly boy. Either way, he's probably guilty, but he probably didn't know. ;) There are people who are paid far less than he earns per year (outside his base salary) to take care of business. No doubt they f'ed up.
  4. IJ Reilly macrumors P6

    IJ Reilly

    Jul 16, 2002
    It seems to me that people "familiar with the matter" would be the very people who would not say anything about it. In any event, a couple of major aspects of this story make little sense, principal among them is why grants of options would ever be made without the proper procedures taking place.

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