SEC to Explore Allegations of Jobs Involvement in Backdating Scandal
April 26, 2007 2:59 PM
comment(s) - last by
Even though the Apple board supports him, the SEC may take another look at Jobs' involvement with a stock options backdating scandal
Former Apple chief financial officer Fred Anderson's comments against CEO Steve Jobs may have given further life to the Securities and Exchange Commission's probe of Apple’s option backdating in 2001. Anderson stated that he warned Jobs of the possible legalities of backdating Apple stock options, which may lead to federal investigators and the SEC to take a second look at the case.
While Jobs will most likely still be clear of any charges, another SEC investigation will keep the
attention on an issue that Apple quickly wants to move past
. The SEC has unofficially cleared Apple as a company, but declined to mention anything specifically about Jobs.
The Apple board officially said that it will
continue to support Jobs
throughout the scandal.
"Steve Jobs co-operated fully with Apple's independent investigation and with the government's investigation of stock option grants at Apple," the board said in a statement. "We have complete confidence in the conclusions of Apple's independent investigation, and in Steve's integrity and his ability to lead Apple."
Anderson and one other former Apple executive had legal action filed upon them earlier in the week. Anderson has
already filed settlement
with the SEC, agreeing to turn over $3.5 million in fines. In doing so, he neither admitted nor denied any wrongdoing in the 2001 options grant.
This article is over a month old, voting and posting comments is disabled
RE: Not a big deal...
4/26/2007 4:57:17 PM
I agree. The feeling I've had about this situation is that Jobs did something wrong, but the Board was trying to protect him. That's why I said in an earlier post that it seems like he is above the law.
Also, I never heard anything about Jobs paying back the value of the grant. But I suppose the pressure is not there to do that, and it would probably be a bad strategy since it would in effect be an admission of guilt.
RE: Not a big deal...
4/26/2007 6:23:24 PM
IIRC, Jobs returned the options to Apple Inc. without using them, so technically he didn't make any money off it.
But that isn't really the case here, I believe. Isn't this about who allowed the backdating the options without taking certain accounting issues into consideration, ie. taxes?
RE: Not a big deal...
4/27/2007 9:39:38 AM
You see what a little information does you? Jobs did not pay anything back because there was nothing to pay back. He didn't make any money on the options.
Second, Jobs is not an accountant or lawyer. Accordingly, he cannot be expected to know what accountants or lawyers are expected to know, namely complex laws. That is why CEOs are allowed to rely on lawyers and accountants to tell them what to do.
In this case, backdating, which I find despicable is still not illegal. Accordingly, even if Jobs picked the dates and made money by picking the dates, that wasn't illegal. The only thing that was illegal was Apple not accounting for options. It is an accountant's job to account for options.
Jobs had nothing to gain by lying. The Board loves Jobs. Accordingly, they would have given him his stock at any day he wanted. There is no need for him to lie about that.
Moreover, as much as the Board loves Jobs it doesn't have to try and protect him, it hired an independent law firm to find the truth. It found there was no evidence Jobs did anything wrong. The SEC looked at that evidence and agreed.
Moreover, Anderson's statements are not inconsistent with Apple's statements, and I doubt he hasn't already told the SEC this.
"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg
SEC Brings Charges on Two Former Apple Execs
April 24, 2007, 5:06 PM
Google's Gleaming Glass HQ Gets Mountain View Snub, LinkedIn Gets the Love
May 7, 2015, 6:58 AM
Tech's Tax Day Fortunate Few: Qualcomm, Xerox, GE, et al. Pay Little or No Taxes
April 15, 2015, 11:30 AM
LinkNYC Terminals to Blanket New York City With Free WiFi, Free Calls, and Ads
November 17, 2014, 6:50 PM
Microsoft is Open-Sourcing Most of .NET, Adding OS X and Linux Support
November 12, 2014, 8:27 PM
Home Depot Lost 53 Million Emails, Blames Windows, Buys Execs New Macs
November 9, 2014, 5:00 PM
Former NSA Lawyer: If Google, Apple Encrypt User Data, They’ll Wither on the Vine Like Blackberry
November 6, 2014, 12:15 PM
Most Popular Articles
iPhones May Get Curved Screens Next Year
August 24, 2016, 6:45 AM
Drones at the Airport
August 26, 2016, 5:00 AM
First Apple Computer Auctions for $815,000
August 27, 2016, 7:51 AM
5 Easy Ways to Lower Blood Pressure By Monique C. Bethell, Ph.D.
August 25, 2016, 8:00 AM
2 NEW PlayStation 4 Models - Unveiling September 7th
August 23, 2016, 6:23 AM
Latest Blog Posts
First Self-Driving Car debut on the streets of Singapore
Aug 28, 2016, 4:10 PM
Coming Soon - Drones and Airports
Aug 24, 2016, 12:40 PM
SolarCity’s Gigafactory: A Milesone in Emerging Technology by Lily Emamian - 15 August 2016
Aug 15, 2016, 6:30 AM
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information