Steve Jobs was aware of stock option backdating, issues apology
05 Oct 2006
Apple Computer Inc. CEO Steve Jobs issued an apology to shareholders on Wednesday after an internal investigation by the company's board of directors found that he had been aware of the company's practice of backdating employee stock options.
"I apologize to Apple's shareholders and employees for these problems, which happened on my watch," Jobs said in a statement. "They are completely out of character for Apple."
The findings from a three-month investigation by Apple's board of directors reveal that the company had backdated option grants made on 15 dates between 1997 and 2002. According to the company, the findings also raised serious concerns about the roles that two former officers had played in the matter. Though the company did not identify these officers, the chief financial officer at the time of the grants, Fred Anderson, has resigned from Apple's board of directors, saying that this is "in Apple's best interests."
Although the investigation found no misconduct by any member of Apple's current management, the company said that Jobs was aware of 'a few instances' of the practice. It however clarified that Jobs himself did not benefit from the backdated grants and "was unaware of the accounting implications."
A large number of Silicon Valley companies are currently under investigation for their role in the controversial practice of backdating, or allowing employees to be granted stock options dated from an earlier time. Such a practise allowed employees to realise unfair profits as backdating presented them with options at a lower traded price.
