``Someone is certainly
responsible for the harm done. If not Steve Jobs, then who?'
...
Apple has said it provided the results of its investigation
to the SEC and the U.S. Attorney in San Francisco. Federal
investigators are probing Apple's backdating of stock options, a
person familiar with the matter has said.
The probe may have been dealt a setback yesterday when
Kevin Ryan, the U.S. Attorney in San Francisco who helped spark
a nationwide investigation of stock options, announced he will
step down from his post with two years left in his term.
What harm? The claim is stockholders suffered, but that goes to the heart of the options expensing debate that has been raging for the last decade. Without the options, companies have to find other ways to compensate employees, which also incur costs, so it's just deciding how it's accounted for. The outcome of the debate has been some changes in accounting rules and transparency (which I don't disagree with, but along with the changes come some troublesome consequences as well --how much should a companies stock price impact or not impact their income and operating statements?).
Like I've said before, this is an accounting issue and Steve Jobs and the other CEOs should line up behind every other CFO and directors of accounting departments of the companies that have been investigated. Furthermore, the SEC and accounting officials are just as responsible, as these practices they're cracking down on have been going on for far longer than the decade, and because there were many errors, part of the blame goes to the government officials in failing to make clear the new ground rules. You can't change the speed limit from 75 to 55 overnight and start issuing speeding tickets.
The probe may have been dealt a setback yesterday when
Kevin Ryan, the U.S. Attorney in San Francisco who helped spark
a nationwide investigation of stock options, announced he will
step down from his post with two years left in his term.
Wonder if this was politically motivated...
Consider the Pros and Cons of Expensing Stock Options
gbr.pepperdine.edu
Companies Prepare to Expense Stock Options
businessjournalism.org
Summary of Statement No. 123 (revised 2004)
fasb.org
Innovative New Technique Proposed to Expense Employee Stock Option Grants
fenews.com
Optionmania II: Impact
fool.com |
