SEC Investigating 2001 Stock Options Grant to Apple Computer CEO
Confidential sources have told the Financial Times that Apple will reveal that it falsified records of a full board meeting in 2001 when granting 7.5 million stock options to CEO Steve Jobs, in a regulatory filing later this week.
The falsified documents are said to be part of evidence obtained by the Securities and Exchange Commission in its investigation of the company, as it decides whether to pursue a case against Apple or any individuals involved in the inappropriate stock options grant. Many news analysts and insiders say that Jobs' himself is the likely target of the investigation as the company said publicly in October that while he had been "aware" of the backdating in "in a few instances" he did not "receive or otherwise benefit from these grants and was unaware of the accounting implications."
While Apple is one of more than 160 companies that has fessed up to stock option backdating, the scandal has become increasingly difficult for the Cupertino, Calif.-based company to contain in the wake of widely successful product launches and increased market share for consumer electronics (iPod) and Mac desktop and laptop computers.
In a 2002 filing, Apple said the options currently under review were granted in October 2001 at an exercise price of $18.30 a share. Jobs later gave up those options prior to exercising them, implying that no gain was made from them.
Under Apple’s rules, the chief executive’s remuneration must be set by a compensation committee of independent directors and later authorized by the full board.
An Apple spokesman refused to comment on the matter on yesterday, the Financial Times reports, but said the company had handed the findings of its internal inquiry to the SEC.
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