AppleInsider StaffSchmidt was elected to become an Apple director during an Apple board meeting on Tuesday, bringing the Cupertino, Calif.-based company's director head-count to eight.
"In connection with his appointment, Dr. Schmidt has declined the automatic stock option grant to purchase 30,000 shares to which new directors are entitled under the Company’s 1997 Director Stock Option Plan," Apple said in a filing with the Securities and Exchange Commission on Friday,
Instead, Schmidt intends to purchase 10,000 shares of Apple common stock on the open market, the company said.
Apple is one of many Silicon Valley corporations under investigation by the SEC due to irregularities discovered with stock option grants awarded to several current and former executives and board members.
The irregularities have spawned several investor lawsuits and sent some Apple execs scrambling to obtain council.
Stephen Silver
Christine McKee
Charles Martin
Marko Zivkovic
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26 Comments
That's odd. Why doesn't he exercise this "right" accorded to all board of directors members? Instead, he opts to buy only 10,000 shares on the open market? Will he be reimbursed by Apple for this purchase? Odd... just odd.
Not sure these are the plans of one being primped for eventual takeover of the CEO post (not that I believed that anyway).
That is a little weird, I wonder if it is in part due to the options fiasco. Do options expire? I don't see anything wrong with accepting the options and not exercising them until the current issues are resolved.
He probably doesn't want to be involved in any SEC charges in his new position with Apple. Still seems strange though.
Well, I guess its better for Apple if he doesn't exercise his right to buy them, and uses his own money. Are companies allowed to buy their own shares - if not I doubt he'd be reimbursed for them...
Oh, c'mon, he's not literally going to be using his own money to buy the shares. Probably some nice little tax shelter he has set up will buy it for him.