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Steve Jobs subpoenaed over stock option backdating
It's not easy being Steve Jobs. When you're not jet-setting around the world, introducing your disappointing EDGE-only iPhone to the European market, you're getting subpoenaed by US securities regulators over a lawsuit concerning stock option backdating. According to reports, El-Jobso has been called in for the US Securities and Exchange's case against former Apple general counsel Nancy Heinen over backdating option grants to Jobs and other executives. Apparently, Heinen is looking for 45 depositions for the case, though the SEC is hoping to limit that to 12 (per party). SEC lawyers are claiming that Heinen and former Apple Chief Financial Officer Fred Anderson (of Elevation Partners fame) backdated more than $20 million in stock options in 2001 for Jobsy, themselves, and other executives. Anderson -- who's already paid $3.5 million in fines -- claims he was given permission by Jobs himself to backdate the options. An internal Apple review claims it found two questionable stock options awarded to Jobs, but found no wrongdoing on his part. For Jobs' sake, let's hope he stays out of the slammer -- a pretty face like that won't last long on the inside.[Thanks, Randall]
Palm sells 25% stake to Bono and former Apple execs
The wires are alight with news that Palm will be announcing a deal to sell a 25% stake to Elevation Partners. The private equity firm where Bono is a founding partner will shell-out $325 million for the privilege of helping Palm reorganize. Jon Rubinstein, Apple's retired head of hardware -- yes, that hardware -- joins Palm as executive chairman to head up product development while Apple's former CFO Fred Anderson -- yes, that Fred Anderson -- joins Palm's board of directors. Palm's current Chairman, Eric Benhamou, and board director D. Scott Mercer would then step down assuming shareholders approve the deal. Sure, it's not the sale that many had hoped for, but at least we can look forward to a new limited edition black and red Foleo which is somethin'. Update: It's official, see the press release for all the recapitalization gore.[Via MocoNews]
Apple "not going to enter a public debate with Fred Anderson"
In a remarkably candid and defensive statement issued today by key members of Apple's board of directors (including Eric Schmidt and Al Gore -- heard of 'em?), apparently, "We are not going to enter into a public debate with Fred Anderson or his lawyer." It goes on to say:"Steve Jobs cooperated fully with Apple's independent investigation and with the government's investigation of stock option grants at Apple. The SEC investigated the matter thoroughly and its complaint speaks for itself, in terms of what it says, what it does not say, who it charges, and who it does not charge. We have complete confidence in the conclusions of Apple's independent investigation, and in Steve's integrity and his ability to lead Apple."Kind of sounds like Steve just wrote it on his iPhone and sent it on over, right? Anywho, no real updates from the SEC since yesterday's allegations that Steve was behind the whole backdating scandal, but it looks like Cupertino Co. are getting off without sanctions and Jobs still lies in legal limbo for the time being, despite Apple's wholehearted support of their Jobs-in-Chief.
Former Apple CFO publicly blames Jobs for stock options scandal
Ouch, El Jobso is not pleased. The tech exec superstar who's largely gotten off clean despite Apple's lingering backdated stock options scandal is now being publicly blamed for wrongdoings by former Apple CFO Fred Anderson, who was dismissed by the company in 2004. According to a statement issued by Mr. Anderson's lawyer via the SEC:"Fred cautioned Mr. Jobs that the Executive Team grant would have to be priced based on the date of the actual Board agreement or there could be an accounting charge. He further advised Mr. Jobs that the Board would have to confirm its prior approval in a legally satisfactory method. He was told by Mr. Jobs that the Board had given its prior approval and the Board would verify it. Fred relied on these statements by Mr. Jobs and from them concluded the grant was being properly handled. ... It now appears the Board may not have given the necessary prior approval to the grants, contrary to what Mr. Anderson understood from Mr. Jobs"This statement was issued after Anderson was ordered by the SEC to return $3.5 million dollars in stock options and also fork over a $150,000 fine for his part in the whole mess. On the flipside, former Apple general counsel Nancy Heinen seems intent on going down with guns blazing: from what we can tell, she has no plans on settling so easily. The SEC charged her for her participating in a scheme that caused Apple to under-report its expenses by almost $40 million, and it looks like she's going to court like the high-powered attorney she is. Things are not looking good Cupertino way -- could this mark the beginning of the end of the Jobs-led Apple corporate structure as we know it? Only time will tell, but we'll keep you updated. [Warning: link requires subscription]
Apple CFO Fred Anderson settles for $3.5mil
Well, it looks like the stock options issue that has been pestering Apple for months now may be over. AppleInsider is reporting today that Apple's CFO Fred Anderson has settled with the Securities and Exchange Commission to the tune of three and a half million bucks. Mr. Anderson denies any wrongdoing in the settlement.Ok, now that all of this is (probably) over, let's re-focus on Leopard, shall we?
Fred Anderson resigns from Apple Board
In a comment under yesterday's report on the outcome of the Apple stock option investigation, SubGenius wisely proclaimed "Fred is going to be the fall guy." Congratulations, SubGenius - you win a brand new star! (or at least you will when the star system is working again)Fred Anderson, who valiantly served as Apple CFO from '96 to '04, informed Apple that he believes "it is in Apple's best interests that he resign from the board at this time." His official resignation was Sept 30, 2006. Of course just because Anderson resigned from the board doesn't mean he did anything wrong or that he's covering up for anyone else.. this kind of thing happens all the time. He probably just wants to spend more time with his family and improve his golf swing.
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 Mr J is quoted apologizing to Apple's shareholders and employees for these problems, especially since they happened under his watch, saying "They are completely out of character for Apple." He continues saying "We will now work to resolve the remaining issues as quickly as possible and to put the proper remedial measures in place to ensure that this never happens again," i.e. - somebody's in for a whole lotta iButt woopin'.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.