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Administration December 29, 2006
Apple CEO Aware of Some Stock Option Grants
December 29, 2006 (PLANSPONSOR.com) - Apple Computer
Inc. said in a filing to the Securities and Exchange
Commission (SEC) that the company's CEO Steve Jobs did know
about, and in some instances recommended, some favorable
stock-option grants, but reaped no gain from backdated
options.
Reported by Adrien Martin
class=”times”> The special committee the board appointed to look into the past grants said in the filing Jobs was “aware or recommended the selection of some favorable grant dates,” but “did not receive or financially benefit from these grants or appreciate the accounting implications,” according to the Wall Street Journal.
class=”times”> The probe by the committee also found, of 42,077 grants made between October 1996 and January 2003, 6,428 were on dates they should not have been. It also found, of two of the grants awarded to Jobs, one for 7.5 million shares was improperly dated, the newspaper reported.
class=”times”> Apple said it would restate its earnings by $4 million in 2006, $7million in 2005, and $10 million in 2004, and also plans to take a non-cash charge of $84 million as a result, the WSJ said.
class=”times”> The filing by the computer giant puts more blame on Jobs than previously revealed. The company announced in June an internal investigation unearthed some irregularities in its stock option grants, including a grant it made to Jobs, which was later cancelled (See Apple Reports Irregularities in Stock Option Grants ), but said nothing of his knowledge about grants given to others at the California-based company.