Apple chief's stock options did not have proper board approval - report

[OhioChick]

12.27.06, 10:43 PM ET

HONG KONG (XFN-ASIA) - 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.

News of the irregularities is expected to be revealed in a regulatory filing by Apple before the end of this week, it said.
http://www.forbes.com/home/feeds/afx/2006/12/27/afx3285045.html



Apple Falls 6% On Concerns About Options Probe

The report, from legal trade publication The Recorder on the Web site Law.com, also said chief executive Steve Jobs has hired his own attorney to deal with inquiries by the Securities and Exchange Commission and the Department of Justice into Apple's stock option grants.

By Reuters
InformationWeek

Dec 27, 2006 11:43 AM
BOSTON - Apple Computer Inc. shares tumbled as much as 6 percent Wednesday after a media report that federal prosecutors were looking closely at "apparently falsified" stock option documents at the maker of iPod media players and Mac computers.

The report, from legal trade publication The Recorder on the Web site Law.com, also said Apple Chief Executive Steve Jobs has hired his own attorney to deal with inquiries by the the U.S. Securities and Exchange Commission and Department of Justice into Apple's stock option grants.

Reuters could not immediately verify the report.

Apple spokesman Steve Dowling declined comment. He said that the company is providing all details that emerge from its options probe directly to the SEC, but that it is not discussing the matter with the public.

http://www.informationweek.com/news/showArticle.jhtml?articleID=196702131

[jgraz]

1. Yikes -- too bad it's on the one CEO who actually deserves his compensation

I was part of the NeXT/Apple buyout and I gotta say, that company is in business today because of Steve Jobs. Here's hoping they get through this with a minimum amount of bloodshed.

[Demobrat]

2. Down 6%?

Buying opportunity.

[Neshanic]

3. Ahh...the infamous double standard rears it's nasty head.

Steve Jobs deserves everything! The whole planet! He makes my ear pacifiers. He is a GOD!

[ryanmuegge]

4. Thank you!

I'm sure the forum's thought police will soon be coming to get you, though.

[Nomad559]

5. Apple Shareholders Sue Apple

I suspect Steve Jobs will be leaving Apple soon.

Apple Shareholders Sue Apple
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=103&topic_id=230239

Apple Owns Up to Backdating
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=103&topic_id=238798

Apple says likely to restate results, delay filing
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=233x3931