Filed under: Apple Corporate, Apple Financial, Apple
Apple's Special Committee Reports Findings of Stock Option Investigation
Back in August, Apple announced they had found some stock option irregularities and launched an internal investigation to get to the bottom of things. This voluntary audit netted a warning of de-listing from NASDAQ because they had to delay filing their Q3 earnings results (fortuately, NASDAQ cut Apple a break). Today, the big fruit has issued a press release with the findings of this audit, which was performed by a special committee of outside directors, independent counsel and accountants. This crack team had to shuffle through over 650,000 emails and documents (Spotlight to the rescue!), as well as conduct over 40 interviews of current and past employees.In summary, the investigation's results go a little something like this:
- No misconduct by current members of Apple management was found
- The most recent evidence of 'irregularities' points to 15 stock option grants made between 1997 and 2002. Said grants were apparently issued before their approval dates
- Steve Jobs knew about the grant dates, but he apparently didn't know about the slight-of-hand accounting implications, nor did he benefit from any of them
- The data found 'raises serious concerns' of two former officers related to the accounting, recording and reporting of these grants. Apple will provide details to the SEC
In the collateral damage department, Fred Anderson, Apple's former CFO from 1996 to 2004 who now serves on the company's board of directors, has decided now might be a good time to resign from said board.
Finally, Apple and the audit committee agree that the company will ultimately have to restate their historical financial statements to "record non-cash charges for compensation expense relating to past stock option grants." At this time however, the company is still working to analyze their findings and determine which periods will need restating, as well as the differential amounts.
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Reader Comments (Page 1 of 1)
eBay forum Girl said 7:51PM on 10-04-2006
Without Jobs, Apple will never be able to get to the point they can really give microsoft competition.
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Scott F said 7:37PM on 10-04-2006
STOP RUNNING THE GM AD WITH THE JUMPING GIRL!
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Marc said 8:24PM on 10-04-2006
I disagree with Jobs. Loose accounting sounds completely in character for Apple's finance dept.
The product development area is firing on all 6 cylinders, but Jobs needs to clean up finance and corporate sales.
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hello kitty said 9:38PM on 10-04-2006
hello kitty
poetry in motion
I like this idea that Apple is fair and honest
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SubGenius said 9:08AM on 10-05-2006
Fred is going to be the fall guy.
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Andi said 4:05AM on 10-05-2006
Yeh the idea that apple are fair and honest certainly will help them from the consumers points of view!
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nimbuscott said 11:12AM on 10-05-2006
In Related News:
HP Reports Result of Internal Investigation
"The Board of Directors all acted in good conscience and therefore should receive bonuses."
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