Investors back Jobs as Apple stock probe widens

[onehandle]

Investors and Wall Street supporters of Steve Jobs rallied to defend the visionary founder of Apple Computer, as a growing storm over manipulated share options and forged documents threatened to engulf him.

The company's shares closed 0.8 per cent lower yesterday, amid reports that federal authorities are investigating a massive grant of share options to Mr Jobs and that documents were forged to give the misleading impression that Apple's board had approved the grant.

Apple insisted yesterday that it stood by its October statement that no current board members were guilty of misconduct, but it has promised to provide an update on the scandal before the end of today.

snip...

Jonathan Hoopes, analyst at ThinkEquity Partners, said the share price fall was unjustified because Mr Jobs' position was not in danger.

http://news.independent.co.uk/business/news/article2110340.ece

Mr. Jobs isn't going anywhere and is in line for Disney leadership.

[sweetheart]

1. steve jobs is not larry ellison

he does not pay for his sex

[originalpckelly]

2. He actually had no control over this...

an independent compensation board does this. It's not like Enron or anything, because Apple is doing really well financially, it's just about stock options and back dating them so one can cash them out sooner.

[Telly Savalas]

8. Yes, he did.

Sure it's the job of the compensation committee to oversee the stock option plans, but given the number of people involved in the financial reporting process for a company the size of Apple, it's completely implausible that the systematic backdating of options that went on there could just slip under everyone's radar. If Mr. Jobs knew about it, he should have confronted the compensation committee. If he didn't know about it, then he's done an appallingly pathetic job of choosing ethical and responsible people to oversee critical parts of his operation. He's the damn CEO. He does have control. That's why they pay CEO's so much money.

Furthermore, the article suggests that members of management might have been circumventing the compensation committee:

The company's shares closed 0.8 per cent lower yesterday, amid reports that federal authorities are investigating a massive grant of share options to Mr Jobs and that documents were forged to give the misleading impression that Apple's board had approved the grant.

Obviously, we'll have to wait and see what the investigation yields, but if it turns out that there were forged documents, it's really hard to imagine Jobs is wearing a halo around his head.

Additionally, this isn't just about cashing in options sooner. The whole premise of backdating is to artificially date the options to a prior date when the stock was cheaper. This results in a lower exercise price for the option, which translates into a bigger gain for the option-holder. It's a way for executive officers of corporations to loot the piggy-bank.

If this was the CEO of a large oil company or pharmaceutical company, would DUers be coming to his defence? Malfeasance is malfeasance even if there are ads with cool dancing silhouettes.

[alfredo]

21. I believe Jobs did not exercise the options when he found

there were problems with them. Another form of compensation was used instead.

[conservdem]

25. I think he did not exercise the options only because

there was light put on the improper activity. He's trying to avoid a penalty after getting caught.

I do not have proof of this, its my take on information reported. If my take is right, I hope the nail him.

I doubt his punishment would be more than a year of minimum security. It might be far less than that, but I hope it happens.

[alfredo]

27. From the article I read it appeared he rejected the

deal when he found it to be improper. The board then did a "do over" and did the compensation properly (restricted stock). He did not benefit in any way from the grants.

If he did wrong he should pay. If found guilty the punishment should be determined by if it was an error or bad intent. That he didn't benefit from the activities of the board could be a mitigating factor.

An internal investigation found him blameless, but we will wait and see if they were honest in that decision.

[conservdem]

24. Good points. Especially you call for evenhandedness.

[VegasWolf]

4. Actually, I would take Larry over Jobs anytime.

:toast:

[Nomad559]

3. Once a thief, always a thief

Steve Jobs Is a thief, this prick screwed over his "friend" Steve Wozniak on the Atari deal.

http://en.wikipedia.org/wiki/Steve_Jobs

He returned to his previous job at Atari and was given the task of creating a circuit board for the game Breakout. According to Atari Founder Nolan Bushnell, Atari had offered $100 for each chip that was reduced in the machine. Jobs had little interest or knowledge in circuit board design and made a deal with Wozniak to split the bonus evenly between them if Wozniak could minimize the number of chips. Much to the amazement of Atari, Wozniak reduced the number of chips by 50, a design so tight that it was impossible to reproduce on an assembly line. At the time, Jobs told Wozniak that Atari had only given them $700 (instead of the actual $5000) and that Wozniak's share was thus $350.

[Catch22Dem]

5. And it's on wikipedia, it MUST be true

;)

[Nomad559]

9. It's common knowledge

that Steve Jobs screwed over Steve Wozniak on the Atari deal, If you had bothered to do a search on the subject, you would have known this.

:)

[Catch22Dem]

19. It was no bother, I already knew about the deal (n/t)

[onehandle]

6. You always take the bait.

Did you sell your Apple stock before it became insanely profitable or were you fired by Apple or what?

[VegasWolf]

7. Well, Exxon is even more insanely profitable and look at the greedy fat

fucker that runs that company. Apple has gone up only because of the IPOD, and from listening to friends at Apple, I don't think Jobs had a lot to do with it. Check out Next to see what a fine job that Job's can do on his own.

[suston96]

12. Just one word for you.....

...Pixar.

Sold to Disney by Jobs for 7.6 billion, uh - in stocks. Jobs now is the leading single stockholder in Disney.

[VegasWolf]

16. Second word, Next, Job's has a very mixed history. Disney is really going places, not!

[Nomad559]

10. Apple chief's stock options

did not have proper board approval

http://www.forbes.com/home/feeds/afx/2006/12/27/afx3285045.html

Steve Jobs, chief executive of Apple Computer, was given 7.5 mln stock options in 2001 without the required authorization from the company's board, the Financial Times quoted sources as saying.

The newspaper said in its online edition that records that purported to show a full board meeting had taken place to approve Jobs' remuneration, as required by Apple (nasdaq: AAPL - news - people )'s procedures, were later falsified.

It added that these are now among the pieces of evidence being weighed by the Securities and Exchange Commission as it decides whether to pursue a case against the company or any individuals over the affair, according to unnamed people familiar with the matter.

[onehandle]

13. Seriously

Did Jobs pee in your soup?

Did an Apple II fall on your head?


What is your deal?

[Nomad559]

14. Seriously

Are you going to have a CRY every time I post something factual about Apple or Steve Jobs?

Don't you think It's time you started behaving like an adult Earl?

:eyes:

[onehandle]

15. Did Steve touch you under your panties?

Did you like it and don't want to admit it?


Ok, I'm done with you for tonight. You can go back to stalking the DU Mac forum.

[Nomad559]

18. Am I to assume

that your childish remarks to me are an Indication that you have chosen not to behave like an adult.

I would also like to point out to you Earl that you are stalking me.

I strongly suggest you seek help for yourself.

:eyes:

[Neshanic]

20. Uh, Nomad, Jobs is a holy person here at DU, I found that out with the Disney thingy.

He is a prophet and God. He can do no wrong, and this episode of questionable ethics and facts is wasted because he can do anything and get a free pass.

Just thought you would like to know, but it seems you have hit that little news flash fast.

Good luck.

[conservdem]

23. Why is he given such a pass here?

[QC]

26. Because there are lots of Macintologists here. n/t

[VegasWolf]

28. Then they should be worshipping the "Woz", not Jobs. nt

[paulk]

29. so you defend Jobs by attacking the integrity

of another poster?

What a cheap and dishonest argument.

[ChairmanAgnostic]

11. Remember when non-Jobs leaders almost destroyed the company.

APPLE = JOBS. his insight, and talent at gathering talent, creative folk, and letting them experiment are critical to Apple's success.

[VegasWolf]

17. I made a lot of money buying Apple as it went up, I'm selling it short as it goes down. Wouldn't

own one of their computers though.

[teryang]

22. Center for Public Integrity did a piece on Apple tax avoidance

...in a book a several years back. These people are sleazy. But it's institutionalized sleaziness characteristic of corporate America and its corrupt government, generally.

I only bring this up because it goes to the collapse of our nation financially and economically. They remove the wealth from our country while using up our infrastructure, legal system and military for their profit objectives. They don't pay their taxes, legally mind you because this is how their legislative servants have made it so. This is the essence of nationwide systemic corruption. They call it globalism.

The options scandal is media acceptable, plausibly deniable corruption. The system is rotten to the core, no pun intended.