Apple says Jobs knew of some options backdating
By Rex Crum, MarketWatch
Last Update: 6:24 PM ET Oct 4, 2006
SAN FRANCISCO (MarketWatch) -- Apple Computer Inc. said Wednesday that Chief Executive Steve Jobs knew that some company stock options had been backdated, but he did not receive any of them and was not aware of the accounting implications. The company also said former Chief Financial Officer Fred Anderson resigned from its board of directors.
Announcing the results of a three-month internal study into its options program, Cupertino-based Apple
said it found no misconduct on the part of current management, but that it will have to restate several financial statements to record non-cash charges for stock-option compensation expenses.
"I apologize to Apple's shareholders and employees for these problems which happened on my watch" Jobs said in a statement. "They are completely out of character for Apple. 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."
Apple said that the investigation showed that stock-option grants made on 15 occasions between 1997 and 2002 "appear to have grant dates that precede the approval of those grants," and that the most-recent evidence of irregularities related to a January 2002 grant.
The iPod maker said the probe "raised serious concerns regarding the actions" of two former officers in connection with the accounting, recording, and reporting of option grants.
Apple said Anderson, who had been on Apple's CFO from 1996 until 2004, quit the company's board. In the same statement, Apple said that Anderson, "believes it is in Apple's best interest that he resign from the board at the present time."
Company spokesman Steve Dowling declined to comment if Anderson was one of the two former officers who facilitated the questionable option dealings. He said the company plans to provide that information to the Securities and Exchange Commission.
Dowling also declined to comment about whether the favorable grants Jobs was aware of were issued to executives or employees. End of Story
Rex Crum is a reporter for MarketWatch in San Francisco. |
