Apple stock backdating scandal


Last year, Apple restated its financial reports from 1997 to 2002 by $84 million to cover options-related charges.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.Though Anderson might be bitter, Ebeling said, "I would give his statement credibility." At the same time, she said, the fact that the SEC investigation has proceeded thus far without charging Jobs is a good sign for the Apple chief executive.Steve Dowling, a spokesman for Apple, declined to comment on Jobs's conversations with Anderson.Dowling emphasized that the SEC did not "file any action against Apple or any of its current employees." Government authorities praised Apple for coming forward with the backdating problems last year and for sharing information with investigators.



According to a study by Erik Lie, a finance professor at the University of Iowa, more than 2,000 companies used options backdating in some form to reward their senior executives between 19.Late last year, Apple said that Jobs helped pick some favorable dates but that he "did not appreciate the accounting implications." Explaining Anderson's motive for issuing the statement, his lawyer Jerome Roth said: "We thought it was important that the world understand what we believe occurred here." Roth said his client, a prominent Silicon Valley figure and a managing director at the venture capital firm Elevation Partners, will not be barred from serving as a public-company officer or board member under the settlement, in which Anderson did not admit wrongdoing.Roth declined to characterize the current relationship between Anderson and Jobs.The SEC’s opinions regarding backdating and fraud were primarily due to the various tax rules that apply when issuing “in the money” stock options versus the much different – and more financially beneficial – tax rules that apply when issuing “at the money” or "out of the money" stock options.

Additionally, companies can use backdating to produce greater executive incomes without having to report higher expenses to their shareholders, which can lower company earnings and/or cause the company to fall short of earnings predictions and public expectations.

Options backdating is the practice of altering the date a stock option was granted, to a usually earlier (but sometimes later) date at which the underlying stock price was lower.



Apple stock backdating scandal comments


  • Apple Steve Jobs knew of stock option backdating Computerworld profil de paulette60

    paulette60

    Oct 4, 2006. A three-month investigation by Apple Computer's board of directors found that the company backdated option grants made on 15 dates between 1997 and. McAfee Inc. Broadcom Corp. Sycamore Networks Inc. and Rambus Inc. have been implicated in the scandal, and last June criminal charges were.…
  • Is Apple's $20.5 Million Backdating Settlement Illegal? - profil de paulette60

    paulette60

    Oct 21, 2010. Remember backdating? It was the pseudo-scandal launched by the Wall Street Journal's investigative unit, after its reporters began following up on an academic report that demonstrated many executive stock options awards were too well-timed to be plausible. Apple. Getty Images. Apple. The basic idea.…
  • Options backdating - Wikipedia profil de paulette60

    paulette60

    However, in late 2005 and early 2006, the issue of stock options backdating gained a wider audience. former Apple chief financial officer Fred D. Anderson and former Apple general counsel Nancy R. Heinen for their alleged roles in backdating Apple options.…