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SEC Still Looking Into Jobs?
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Of course. Say it all out loud, and you realize how silly it sounds that Jobs could be cleared of all wrongdoing by an internal investigation at. The SEC is right to suspect Jobs of knowing what was going on, although it is certainly possible that he didn't know anything as
Think if this were Ballmer and Microsoft. How many here would believe the Ballmer knew nothing, based on only what Microsoft said.
Microsoft backdated options for 7 years and took a $200+ million charge for it (around 2000 I think this was) and no-one even cared.
Microsoft Defends Its Options Dating
Microsoft believed "then and now" that it complied with generally accepted accounting principles governing how to book the cost of employee stock options in the 1990s.
In a statement, Larry Cohen, Microsoft's general manager for corporate communications, said: "As administered by Microsoft, the 30-day-lowest-strike-price practice was not selectively applied and did not involve 'backdating' as we understand that term is being used in current reports of investigations of other companies."
In a statement, Larry Cohen, Microsoft's general manager for corporate communications, said: "As administered by Microsoft, the 30-day-lowest-strike-price practice was not selectively applied and did not involve 'backdating' as we understand that term is being used in current reports of investigations of other companies."
There's a lot of grey area in the Microsoft case, as well as many others. The laws have changed recently, so be careful not to apply ex post facto criticism of past actions.
Well the law changed in 2002 so the Apple stuff falls in the same time period as Microsoft. Options awards have always been an issue about how to account for them. It has become a bigger issue as more an more companies awarded options to the everyday person at the company. In the past only a few Silicon valley companies handed out options and it was not much of an issue but more companies do and use it to award performance therefore it is consider compusation and have to follow accounting rules.
Microsoft doesn't have the issue of falsified SEC documents and selective awards, however.
I thought that's what the sales dude at CompUSA got...
Of course Jobs is still under investigation, and he will be until the SEC is finished its investigation. The SEC will not be satisfied with Apple's internal investigation, especially since there is already evidence that Apple falsified documents with the initial filing. And if he is being questioned by the SEC, distancing himself from the Apple legal team (which took a big hit in Apple's internal investigation) seems like a good idea.
According to a report from Bloomberg, Steve Jobs was questioned by the SEC last week regarding the ongoing stock options backdating investigation.
An independent investigation by Apple cleared current management from wrongdoing, but had found serious concerns regarding the actions of two former officers (later identified as former CFO Fred Anderson and former general counsel Nancy Heinen).
Nevertheless, Jobs has reportedly hired independent counsel beyond Apple's lawyers to deal with his involvement in the matter. Apple's board has previously expressed confidence in Jobs.
That being said, I am confident, because Apple would have to be suicidal to falsify anything in its internal investigations while the SEC was also investigating it. There's nothing like the SEC looking over your shoulder to keep your accountants' creativity to a minimum.
Why Apple can't send Jobs packing
http://news.com.com/Why+Apple+cant+send+Jobs+packing/2010-1047_3-6153703.html
http://news.com.com/Why+Apple+cant+send+Jobs+packing/2010-1047_3-6153703.html
"...
There's no way that anyone outside of the upper corporate echelons of the company knows whether we're talking about a passing tempest or the opening chapter of Apple's version of Watergate.
But ever since this story first came to light last year, Apple and its Wall Street apologists have circled the wagons. They badly want this story to disappear, with understandable reason: other CEOs have been forced to walk the plank simply for the appearance of impropriety. At last count, more than 160 companies (including News.com publisher CNET Networks) were being investigated because of their option-granting policies. If Jobs got forced out, Apple would lose its leader, savior and prophet in one swoop.
Who's next in line? Chief Operating Officer Tim Cook? Marketing boss Phil Schiller? Um, I don't think so. A Jobs resignation would lead to an immediate 25 percent drop in the stock--and that would just be the start of a long time of troubles.
..."
There's no way that anyone outside of the upper corporate echelons of the company knows whether we're talking about a passing tempest or the opening chapter of Apple's version of Watergate.
But ever since this story first came to light last year, Apple and its Wall Street apologists have circled the wagons. They badly want this story to disappear, with understandable reason: other CEOs have been forced to walk the plank simply for the appearance of impropriety. At last count, more than 160 companies (including News.com publisher CNET Networks) were being investigated because of their option-granting policies. If Jobs got forced out, Apple would lose its leader, savior and prophet in one swoop.
Who's next in line? Chief Operating Officer Tim Cook? Marketing boss Phil Schiller? Um, I don't think so. A Jobs resignation would lead to an immediate 25 percent drop in the stock--and that would just be the start of a long time of troubles.
..."