Jobs & Options = Downfall?

[jessep28]

Jobs looks to be in hot water (as well as other companies) for knowing about backdating stock options.

This probably won't be an Enron type scandal, but still something to watch. Jobs really injected new life into Apple and it will be interesting to see what transpires from here on out.

http://www.boston.com/business/technology/articles/2006/10/05/apple_says_jobs_knew_of_options/

 

[kgarner]

From the article:

"Do I think Steve is at risk? I think the risk just went down," said James Grossman, a fund manager at Thrivent Financial for Lutherans in Appleton, Wis.

Sounds like he is more in warm water, than hot water.

 

[Silencio]

The SEC dropped its own investigation into Apple's stock options backdating mess. Apple's investigation team is voluntarily handing over their findings and info to the SEC, which does raise the possibility that they could re-open their inquiry.

The question is who the two (former?) executives are that benefitted from the backdating, and what will become of them...

 

[Queso]

It's been speculated that one of the executives was Fred Anderson, but it's just speculation at the moment. I can't see how Steve can take the flack when he didn't benefit from the deal, especially if told by his CFO that all was above board.

We will see.

 

[patrick0brien]

This is no big deal. Enron/Worldcom this is not.

If anything, 'ol Fred screwed up. The rules for stock options at that time were changing daily. I'm not surprised this occured at all.

In fact, I'm a little suspicious we haven't heard about other companies doing this self-audit.

 

[PlaceofDis]

In fact, I'm a little suspicious we haven't heard about other companies doing this self-audit.

oh they are. Microsoft included i believe.

 

[IJ Reilly]

It's been speculated that one of the executives was Fred Anderson, but it's just speculation at the moment. I can't see how Steve can take the flack when he didn't benefit from the deal, especially if told by his CFO that all was above board.

We will see.

That's sort of a Ken Lay defense, which I don't think works anymore. I don't expect Steve to be found culpable of any actual wrongdoing, but it is appropriate for him to admit that as CEO he should have exerted more oversight.

(Yikes, my 4,000th post. Fortunately not all on this topic.)

 

[Peace]

According to an Appleinsider article quoting another source the other person is Former General Counsel and Secretary, Apple Computer, Nancy Heinen.

 

[asphalt-proof]

Steve Jobs went out and took responsibility and apologized for the incident. This, alone, does a lot to diffuse a problem. Something that I wish political leaders would learn.
I don't see any major fallout for Apple or SJ because of this.