Apple defends Steve Jobs in options row
Published: 29 Dec 2006 12:10 GMT
Apple released new information about its allocation of stock options on Friday, defending chief executive Steve Jobs following speculation that a key document had been forged.
In its delayed annual report, published early on Friday, Apple said that it would restate its financial results for the last three years, and also take a charge of $84 million (£42 million).
Apple also said that while Jobs was "aware or recommended the selection of some favorable grant dates, he did not receive or financially benefit from these grants or appreciate the accounting implications."
"The special committee, its independent counsel and forensic accountants have performed an exhaustive investigation of Apple's stock option granting practices," said former Vice President Al Gore, chair of the special committee, and Jerome York, chair of Apple's Audit and Finance Committee, in a joint statement. "The board of directors is confident that the company has corrected the problems that led to the restatement, and it has complete confidence in Steve Jobs and the senior management team."
Earlier this week, legal web site Law.com claimed that federal prosecutors were looking closely at "apparently falsified" stock option documents. Other reports claimed that chief executive Steve Jobs had received a grant of 7.5 million share options in 2001 without the required approval from the full Apple board, and that documents were subsequently drawn up to suggest that the board had approved them.
The allegations have sparked concern that Jobs could be forced to resign, robbing Apple of its visionary leader. Apple's stock price has dropped around 5 percent this week, but rose by almost three percent following Friday's announcement.
Earlier this year, one of Apple's former chief financial officers quit the company's board of directors after the internal probe found evidence of some irregularities in stock option allocation.
Almost 200 technology companies have been caught up in the options scandal, and have been forced to investigate whether stock grants were backdated — a practice where the grant date of an option is moved to coincide with a low point in the value of a company's shares. Last week, Juniper Networks admitted it would have to take a $900m (£455m) charge, while civil and criminal charges have been filed against several former executives of storage vendor Brocade.
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