The option grant process can start in a number of ways... the executive may request them, a board member might propose them, an outside consultant could recommend an option program for employees... but in almost all cases the board must approve the program.
The board, in its formal approval, instructs the treasurer, secretary or other designated financial person to issue the options. I believe outside agents such as the stock transfer agent and registrar are also informed - they need to know as a matter of routine to prevent trading in bogus stock.
Yes, the designated person could somehow bypass the board and issue unapproved options, but that's pretty dumb. It would be caught during the annual audit, during routine SEC filings, any number of ways. And options on 7 MILLION shares? LOL!
My guess is that there was a verbal agreement between Jobs and the board that was somehow overlooked and didn't get included on the board meeting agenda. It happens. JMHO.
Only a few, perhaps only one, person could issue an option just like only a few persons can issue a paycheck. I doubt that person has the initials SJ. jmo. |
