Apple stock options inquiry claims board victim


Apple stock options inquiry claims board victim

Antony Savvas

Apple’s former chief financial officer has resigned from the board after an internal investigation by the company into stock option awards.

The probe focused on the awarding of back-dated stock options to Apple employees, including option offers made to Apple CEO Steve Jobs.

Around 100 US technology companies are currently facing probes by the US Securities and Exchange Commission (SEC) and federal and state prosecutors over back-dated stock option awards.

As a result of the inquiry, former Apple CFO Fred Anderson has resigned from the board. He was CFO at Apple up until 2004.

The company said, “Apple initiated this voluntary independent investigation after a management review discovered irregularities in past stock option grants.”

Apple said of the inquiry's findings, “The investigation raised serious concerns regarding the actions of two former officers in connection with the accounting, recording and reporting of stock option grants. The company will provide all details regarding their actions to the SEC.”

Apple said it had “found no misconduct by any member of Apple's current management team”.

Back-dated stock options, which see recipients being offered options at a previous low historical price, are not illegal, but they have to be fully accounted for in accounts.



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