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The SEC Is Getting Closer To Jobs
Strudelkugel writes "CNN is reporting that Apple's ex-CFO warned Steve Jobs about backdating options. From the article: 'Apple's former finance chief Fred Anderson blamed Apple CEO Steve Jobs for a 2001 stock option grant that was backdated, according to a statement from Anderson's lawyer released Tuesday. The statement was released by Anderson's lawyer, Jerome Roth, after Anderson settled with the Securities and Exchange Commission related to Apple's stock option plan without admitting or denying any wrongdoing.' This is serious business. It is quite possible that the SEC could someday require Jobs to resign from Apple."
Bring on the iPod clones!
The iMac clones!
The Powerbook clones!
Ring the death knell, only Steve Jobs has imagination. Oh no!
He can still run it from the shadows.
A feeling of having made the same mistake before: Deja Foobar
If Jobs has a good lawyer, and doesn't make the 'Martha Stewart' mistake of lying to federal investigators, then the worst thing that will happen to him is a hole in his wallet.
You can't talk about Wikipedia's flaws on Wikipedia
You can see from today's AAPL chart that the average investor thinks this overblown. The dip and the quick recovery occurred when the news about this accusation came out.
As an extravagantly paid consultant. Who in their right mind thinks that they're going to let him go, unless the law puts a total barrier between Apple and Jobs?
Despite all our criticisms as techno-nerds about Steve Job's "reality distortion field", I think that we can agree that this man is the best person to remain head of Apple. One might argue that he is overpaid, but, with that said, this man can sell their products like no other. I think his fate should be to pay back whatever ill-begotten gains this dirty trick gained him, plus fines, and he should remain in his current position.
Jobs probably won't be forced to quit by the SEC. From today's WSJ coverage:
"The SEC said it will not pursue any further action against Apple itself, which cooperated fully with the probe"
Run for President, fix the economy, the political system and world strife then pardon himself. He's got my vote.
"God fights on the side with the best artillery." - Napoleon, Marshal of France - speaking truth to power
...Jobs can just claim that the backdating was the result of a really badly screwed up DST patch.
Have gnu, will travel.
The funny thing about the Stuart case is she COULDN'T have been charged with insider trading since she doesn't fit the definition of an insider (in the company she had traded in), only her friend could have been harmed. It was her lying and instructing others to lie that got her in trouble.
There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
The U.S. Securities and Exchange Commission made the following announcement today:
SEC Charges Former Apple General Counsel for Illegal Stock Option Backdating
http://sec.gov/news/press/2007/2007-70.htm
Mac: "PC, I felt a great disturbance in the Force, as if millions of voices suddenly cried out in terror and were suddenly silenced."
PC: "Oh, that was the door to courtroom slamming shut. There are six Mac users out in the hallway singing Jonestown's Classics..... Hey mac, is this Gatorade??"
boycott slashdot February 10th - 17th check out: altSlashdot.org
SEC could someday require Jobs to resign
Would he then change his name to "Steven Pinkslips"?
Table-ized A.I.
Since when? Either they press criminal charges or they do not. But even if they do and found guilty there is no power in the law I am aware of that can force someone to resign their position. IANAL, but if such power is in the hands of SEC it is clearly pernicious.
"Fred Anderson has a long-standing impeccable reputation and is widely regarded as one of the most ethical CFO's in the nation whose extraordinary contributions to Apple's success during his eight-year tenure are unquestioned. He is accurately recognized by many current and former Apple employees and throughout the industry as a man of exceptional ability, achievement and integrity. "With respect to today's announced settlement by the SEC of its complaint against him, Fred is pleased to put this matter behind him. "In the settlement Fred makes no admission or denial of the claims by the SEC. The terms of the settlement permit Fred to continue to act as an officer or director of public companies and do not bar him from practicing before the SEC. The claims against him also do not include fraud under the two antifraud provisions of the securities laws requiring proof of knowing misconduct. "With respect to the Executive Team grant that is the subject of the complaint against him: * Fred was told by Steve Jobs in late January 2001 that Mr. Jobs had the agreement of the Board of Directors for the Executive Team grant on January 2, 2001. At the time Mr. Jobs provided Fred this assurance, Fred cautioned Mr. Jobs that the Executive Team grant would have to be priced based on the date of the actual Board agreement or there could be an accounting charge. He further advised Mr. Jobs that the Board would have to confirm its prior approval in a legally satisfactory method. He was told by Mr. Jobs that the Board had given its prior approval and the Board would verify it. Fred relied on these statements by Mr. Jobs and from them concluded the grant was being properly handled. * Fred understood that, under Apple's stock option plan and accounting rules at the time, a grant date could be moved to a later date than the date of the actual grant decision and that there would be no compensation expense as long as the stock price on the new date was higher than the price on the original date. Apple's 1998 Executive Officer Stock Option Plan provided in Section 16 that 'The date of grant of an Option...shall be, for all purposes, the date on which the Administrator (in this case the Board) makes the determination granting such Option...or such later date as is determined by the Administrator '. Mr. Anderson understood that the date of grant was to be moved forward pursuant to this provision from January 2 to January 17 to avoid any appearance of impropriety that might arise from a grant awarded just prior to the stock price rise that resulted from the 2001 MacWorld exhibition and Mr. Job's keynote speech at the exhibition on January 9. He further understood that the January 17 date was selected by Mr. Jobs and Ms. Nancy Heinen, the former General Counsel, and that the stock price on January 17 was higher than the price on January 2. * Finally, Mr. Anderson understood that the Board of Directors, which consisted of sophisticated corporate executives of national stature, including the former Chief Financial Officer of IBM, verified the January 17 date by signing in early February 2001 a Unanimous Written Consent (UWC) with an effective date of January 17. It now appears the Board may not have given the necessary prior approval to the grants, contrary to what Mr. Anderson understood from Mr. Jobs and from the Board's signing of the UWC with an effective date of January 17. "Mr. Anderson has agreed to pay disgorgement, the difference in the value of the stock between the January 17 date and the date in early February when the UWC was signed by the Board. "With respect to the October 2001 grant to Mr. Jobs that is also the subject of the complaint, Fred had virtually no involve
Not being able to run large companies would destroy our economy, but maybe that would be a good thing, after the economy recovers. Having a bunch of competitors doing the same thing ends up working better than having one huge monopoly, maybe.
As background: I'm a forensic accountant, do large financial investigations of public companies, and am currently doing a stock option investigation. I do not have any inside knowledge of the issues at Apple.
In fact, it isn't at all possible that the SEC could require Jobs to resign from Apple.
Not true at all. The SEC has fairly broad powers to permanently ban a person from serving as director or officer of a public registrant.
Section 10(b) of the 1934 Act. See: http://www.nysscpa.org/cpajournal/2003/0303/featur es/f031803.htm
I'm free to take questions!
I think you'll find Jobs' Reality Distortion Field is just as effective on investigators and lawyers as it is on your average computer user.
Fun trivia about the Jones case: Judge Susan Weber Wright was a law student of Bill Clinton's at the University of Arkansas. While teaching her Admiralty Law class he lost several student's final exams, including hers. He gave them the choice of retaking the exam or getting a B, which I think is ridiculous. He should have just given them As. She took the B and was justifiably unhappy about it. I think she filed a grievance with the university. Still, she saw her way clear issuing a summary judgement in his favor when she found the Jones case to be without legal merit.
It is cowardly, and a betrayal of whatever it means to be a Jew, to act as a white man
-James Baldwin
I recall the same. However, he was named the interim CEO in 1997, and the "interim" was dropped in 2000.
Currently, Jobs is the CEO and a (non-Chairman) Director of Apple, Inc.