View Full Version : BBC: Apple finds stock option problems
10-10-2006, 07:46 PM
"Apple Computer has found problems in the way stock options were granted, an internal investigation says.
It says chief executive Steve Jobs knew of the way some of the options had been granted, though he did not benefit from them or realise the implications.
The findings led a former financial officer to resign from the board.
External auditors will now examine Apple, as the US government looks into whether the way other firms have granted stock options was legal. Apple said it had found "no misconduct" among existing management staff including Mr Jobs.
10-10-2006, 10:59 PM
No matter what spin is placed on this, its corporate fraud plain and simple.
10-11-2006, 12:59 AM
""To us, this sounds very similar to Hewlett-Packard where Mark Hurd admitted he was aware of the investigations, but was not aware that the activities were potentially illegal," Wu added. "Regardless of the outcome and as we have mentioned before, we continue to believe that even in the worst case scenario where Apple is guilty of improper options grants, we do not believe Steve Jobs is liable, the reason being the compensation committee at Apple is run by an independent board that is not comprised of employees of Apple."
As part of its disclosure Wednesday, Apple also mentioned it has "serious concerns" regarding two unnamed former executives who may be responsible for the counting, recording, and reporting of questionable stock options grants.
Former General Counsel and Secretary, Apple Computer, Nancy Heinen.
"From our assessment, we believe the executives could be former CFO Fred Anderson, who resigned from the Board of Directors, and former general counsel Nancy Heinen," Wu told clients.
Heinen, who abruptly turned in her resignation from Apple in May, is the only former company executive reported to have independently sought legal counsel as a result of the ongoing options scandal. In August she obtained the services of East Bay defense lawyers Cristina Arguedas and Miles Ehrlich to represent her in connection with the probe."
10-11-2006, 04:34 AM
Isn't there a wide-scale investigation going on at the moment at various large corporations checking how stock options were granted? I remember hearing most companies were going through this at the moment (EA, Activision, Take2, and I guess Apple and Sony as well). Correct me if I'm wrong.
10-11-2006, 05:08 PM
I remember hearing most companies were going through this at the moment (EA, Activision, Take2, and I guess Apple and Sony as well). Correct me if I'm wrong.
You forgot to add Autodesk to the list. :)
Autodesk Review Shows Options Trouble (http://biz.yahoo.com/ap/061006/autodesk_stock_options.html?.v=1)
10-11-2006, 05:08 PM
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