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Apple CEO receives stock options without approval

Date Class
28th Dec 2006 Fraud Investigation
 
Details
Apple Computer gave CEO Steve Jobs 7.5 million unauthorized stock options in 2001 and later falsified records to make it appear as though its board of directors met to approve the grant, according to a Thursday (Dec. 28) Web report published by Financial Times.
According to the report, which cites unnamed sources, the U.S. Securities and Exchange Commission (SEC) is now reviewing evidence to determine if it will pursue legal action against the company or any of its employees.

The Recorder, a publication of Law.com, reported Wednesday that Jobs has hired his own legal counsel in relation to the matter.

The Nasdaq stock exchange has threatened to remove Apple's listing if it does not file quarterly financials with the SEC as early as this week. Apple, like a host of other companies, has delayed these filings while it conducts an internal investigation into historical stock options granting. Apple is expected to make those filings this week.

Apple said in October that Jobs knew about some backdating of stock options, but did not personally benefit from the practice. Later that month, Apple reported fiscal fourth quarter earnings of $546 million on revenue of $4.84 billion, but said the numbers may face "significant" readjustment in light of stock options discrepancies

 

 

 


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