Backdating options steve jobs
The SEC is investigating more than 140 companies over backdating.Heinen and Anderson "failed in their duties as gatekeepers" and caused Apple to underreport expenses by nearly million, according to Marc J.They are completely out of character for Apple," said Steve Jobs, Apple's CEO."We will now work to resolve the remaining issues as quickly as possible and to put the proper remedial measures in place to ensure that this never happens again."The company also announced that Fred Anderson, Apple’s former CFO, has resigned from its board of directors. Anderson, who served as CFO from 1996 until 2004, informed the company that he believes it is in Apple’s best interests that he resign from the board at this time.The SEC did not file charges against Wendy Howell, who reported to Heinen in Apple's legal department and who completed paperwork on an option award for Jobs in 2001.Ingrid Ebeling, an analyst at JMP Securities, noted that Anderson's response contradicted Apple's earlier statements that Jobs was unaware of the accounting significance of backdating options.Backdating stock options by choosing award dates when the stock price was low gives employees a financial edge by increasing the likelihood that they will profit when they sell the shares.
The company continues to proactively inform the SEC of its findings.
Several of those grants coincided with dates when Pixar stock was at an annual low. But two weeks ago, the company said in an SEC filing that it would pay as much as .5 million to account for improper backdating of options given to Pixar employees.
On March 18, 2008, Steve Jobs was deposed by the SEC during its investigation of Apple’s stock option backdating scandal. And when you say you failed, is it that you didn’t find anyone that you thought would be suitable to take on the role?
The company and its independent auditors are reviewing the findings of the independent investigation.
Management continues to believe, and the audit committee agrees, that Apple will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants.