Following an independent investigation into the company’s past stock option granting practices, Apple Computer today confirmed that grants made on 15 dates appeared to have been improperly pre-dated, skirting proper accounting principles and potentially violating Securities and Exchange Commission (SEC) regulations. During periods of stock value appreciation, pre-dated grants enable recipients to collect compensation greater than what they were actually entitled to receive.
According to the company, the grants in question were made between 1997 and January 2002, with no findings of misconduct by any member of Apple’s current management team. In “a few instances,” Apple CEO Steve Jobs was said to have been aware of the dates, but was neither aware of the accounting implications of the pre-dating nor the recipient of any benefits from the grants.
In a statement, Jobs apologized for the problems, calling them “completely out of character for Apple,” and promised “to ensure that this never happens again.” The company simultaneously announced that former Apple Chief Financial Officer Fred Anderson has resigned from the company’s Board of Directors, and noted that it was providing “all details” regarding the actions of “two former officers” to the SEC regarding their actions in connection with the grant problems.
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