Benefits of backdating stock options

Rated 4.27/5 based on 542 customer reviews

Both Dell and Novell have also recently received delisting notices from NASDAQ after failing to file quarterly 10-Q reports with the SEC.

Those filings, like Apple's, were delayed by investigations into backdating.

And Apple is far from the only business to take advantage of this type of arrangement. Unlike an entrepreneur like Bill Gates, Jobs didn’t seem cash-hungry.

He was, after all, advertised as being a

Both Dell and Novell have also recently received delisting notices from NASDAQ after failing to file quarterly 10-Q reports with the SEC.Those filings, like Apple's, were delayed by investigations into backdating.And Apple is far from the only business to take advantage of this type of arrangement. Unlike an entrepreneur like Bill Gates, Jobs didn’t seem cash-hungry.He was, after all, advertised as being a $1-per-year CEO.The lower this “strike price,” the less the executive pays for the stock.When these options then “vest” after a period of time, the executive can sell them at the current share price.The public perceived Apple as the “good” underdog in tech, as opposed to other presumably “bad” companies.During his March 18, 2008, deposition, taken at Apple’s Cupertino HQ, Jobs said, “It wasn’t so much about the money.” Instead, he said it was more about being “recognized by his peers.” He said he “felt like there is nobody looking out for me, you know.” But it didn’t necessarily appear that way to onlookers.

||

Both Dell and Novell have also recently received delisting notices from NASDAQ after failing to file quarterly 10-Q reports with the SEC.

Those filings, like Apple's, were delayed by investigations into backdating.

And Apple is far from the only business to take advantage of this type of arrangement. Unlike an entrepreneur like Bill Gates, Jobs didn’t seem cash-hungry.

He was, after all, advertised as being a $1-per-year CEO.

-per-year CEO.

It is possible that Apple could face more than a slap on the hand from the SEC, as in some instances, backdating and springloading options can result in criminal charges of fraud.

target=https://com/articles/SB117323521819929109","logout Url":"https://com/logout?

When the matter eventually ends up in court, Apple’s former general counsel pays .2 million to settle charges that she backdated stock options for Jobs, herself and others — and created fake paperwork to hide this fact.

That resulted in Apple missing the deadlines for filing the proper information with the Securities and Exchange Commission and its auditors. Ultimately, it seems Jobs swapped these options for restricted stock of lesser value.

Today is a significant date in Apple history, though, because it was one of the big scandals that rocked Apple during its big climb back to the top in the mid-2000s.

Leave a Reply