Pixar being investigated

[ThirdEye]

This topic was under another thread and was closed for some odd reason. For anyone looking for the Variety article concerning Pixar and the investigation, here is the correct link:

http://www.variety.com/article/VR1117956465.html?categoryid=18&cs=1

The so "odd" reason was that thread didn't have a single valid link.

[P_T]

Hmm... Could've at least waited for the previous thread starter or someone else (like this thread starter) to provide the proper link.

Anyway, back to topic.
The company pointedly said that "there was no evidence, however, that any current member of management was aware of this irregularity," suggesting that it believed two former execs -- possibly former CFO Fred Anderson and former legal counsel Nancy Heinen, as some accounts have suggested -- had been those granting the unfavorable options.Heh, if I receive such benefit, I would've chosen not to be aware as well. And I wonder what the reason could be for these two former execs to grant those options.

[walterkilis]

More likely than not, the silver and bronze of major coporations will commit some sort of crime... i'm not really surprised or interested.

[ThirdEye]

Hmm... Could've at least waited for the previous thread starter or someone else (like this thread starter) to provide the proper link.

We did, but instead we got some more broken links. This way we now have a clean thread with a single working link.

[noisewar]

Not that I'm defending backdating options, and nor am I ignoring the fact that much of it is criminal, but alot of "backdating" also comes from enthusiastic start-ups being inexperienced and negligent of proper accounting. I hope that is the case with Pixar, although the reality is probably a mix of intent and accident.

[georgenz]

I would hardly call Pixar a 'start-up' and even if they were at that time, the people running the company would've and should've known better.

[beaker]

Not that I'm defending backdating options, and nor am I ignoring the fact that much of it is criminal, but alot of "backdating" also comes from enthusiastic start-ups being inexperienced and negligent of proper accounting. I hope that is the case with Pixar, although the reality is probably a mix of intent and accident.Actually 150ish companies are currently being investigated for backdating. Very little are startups. Why the press is only talking about Apple and Pixar backdating? They like Steve Jobs and he is in the news a lot.

To name a few companies being investigated: McAfee, Dell, Cnet, HP, United Health, Adobe, Cheesecake Factory, etc...

[noisewar]

Actually 150ish companies are currently being investigated for backdating. Very little are startups. Why the press is only talking about Apple and Pixar backdating? They like Steve Jobs and he is in the news a lot.

To name a few companies being investigated: McAfee, Dell, Cnet, HP, United Health, Adobe, Cheesecake Factory, etc...


Right, what I meant was that they were negligent *when* they were start-ups. They're talking only about Apple and Pixar cuz entertainment + news = entertaining news. :hmm:

[beaker]

Right, what I meant was that they were negligent *when* they were start-ups.No, these options issues occured between 2002 and 2006. Most of the companies being investigated are over 10 years old.

[noisewar]

No, these options issues occured between 2002 and 2006. Most of the companies being investigated are over 10 years old.


For their net worth, these are some incredibly young companies. A 20-year company is being investigated for backdating it did between 1997 and 2002, crossing the height of the bubble, a mere 15 years after being founded (the first year if you consider the return of Jobs as a rebirth for the company). I think it'd be hard to deny that the bubble made fiscal responsibility an afterthought, or even made irresponsiblity intended.

The SEC's witchhunt on the Silicon Valley isn't happening because they are bored, and Silicon Valley is not known for restraint of excess in the halcyon decade before the bubble burst, and they are hardly mature companies, and if they are, their mentality hadn't caught up.

Just look at this study:
http://paul.kedrosky.com/archives/2006/07/16/option_backdati.html

What's worse than medium-sized high-tech firms with high stock volatility? What forms most of the industry?

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