AppleInsider StaffShares of iPod maker Apple Computer fell more than 5 percent Wednesday morning following a report that federal prosecutors are examining potentially falsified stock-option documents to determine whether to file criminal charges.
The report, covered by AppleInsider on Tuesday evening, alleged that company officials forged administration documents to maximize the profitability of stock-option grants to its executives.
Apple in an October statement said its investigation into the matter "raised serious concerns regarding the actions of two former officers in connection with the accounting, recording and reporting of stock option grants."
The Recorder cited people familiar with the matter in disclosing that those two ex-officers are Nancy Heinen and Fred Anderson, the company's former general counsel and chief financial officer, respectively.
But weighing most heavily on Apple shares are concerns over chief executive Steve Jobs, who, according to the publication, has hired outside counsel separate from Apple's lawyers to deal with the SEC and Justice Department.
Until recently, Jobs had been represented by the the company's outside law firm, O'Melveny & Myers. Apple had previously stated that its own internal probe into the matter turned up no misconduct by Jobs or other current company officials.
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49 Comments
WallStreet is a bunch of, can I say it, pussies.
buying opportunity.
The fundamentals are still there and Jobs will most likely get a slap on the wrist.
Fred and Nancy are the ones who should have known better.
Steve is a genius not an accountant or a lawyer.
buying opportunity.
The fundamentals are still there and Jobs will most likely get a slap on the wrist.
Fred and Nancy are the ones who should have known better.
Steve is genius not an accountant or a lawyer.
Give me a break: This sounds like the type of defense that a Jeff Skilling might adopt. The options backdating scandal is corporate America at its worst. There is no way to put lipstick on this pig. Read, for instance, today's cover story in the WSJ about options abuse and you'll see what I mean (for those with a subscription, it is here: http://online.wsj.com/article/SB1167...whats_news_us).
Let's face it: This is a shameful episode in an otherwise inspiring corporate career (reminds me of when the great Jack Welch was humbled by his getting GE to pay for things such as basketball tickets and flowers despite his retirement payout in the hundreds of millions).
Steve Jobs should swallow hard, perform a public mea culpa, give the (backdated) options back to the company -- or even better, to charity -- and move on. He is better off hiring a solid PR firm than a lawyer, and getting his face in the media. (He could also do what Welch did: write an apologetic op-ed piece in the WSJ).
He owes it to his stockholders, who are otherwise going to face a lot of stock price volatility.
Steve is genius not an accountant or a lawyer.
Give me a break: This sounds like the type of defense that a Jeff Skilling might adopt. The options backdating scandal is corporate America at its worst. There is no way to put lipstick on this pig. Read, for instance, today's cover story in the WSJ about options abuse and you'll see what I mean (for those with a subscription, it is here: http://online.wsj.com/article/SB1167...whats_news_us).
Let's face it: This is a shameful episode in an otherwise inspiring corporate career (reminds me of when the great Jack Welch was humbled by his getting GE to pay for things such as basketball tickets and flowers despite his retirement payout in the hundreds of millions).
Steve Jobs should swallow hard, perform a public mea culpa, give the (backdated) options back to the company -- or even better, to charity -- and move on. He is better off hiring a solid PR firm than a lawyer, and getting his face in the media. (He could also do what Welch did: write an apologetic op-ed piece in the WSJ).
He owes it to his stockholders, who are otherwise going to face a lot of stock price volatility.
I agree. This might, repeat might, have been able to be swept under the rug 10 or 20 years ago not in 2005.