Friday, December 29, 2006

Apple: "We backdated, but no misconduct"

Sorry, I just don't get the conclusions of this report. How can this be true:
Apple Computer Inc. said its own investigation of stock option grants found no misconduct by current management...
and this also be true:
...but it did find irregularities in some grants between 1997 and 2001, including a grant to Chief Executive Steve Jobs.

Its options mishandling will result in an additional noncash charge of $84 million.

The three-month probe identified a number of grants for which grant dates were intentionally selected in order to obtain favorable exercise prices, the company said.
Look at the language: "irregularities", "intentionally selected", "favorable exercise prices".

So, in summary, Apple backdated options, has to restate earnings and yet no misconduct was found. Here is Big Al Gore:
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.
Once again, no misconduct, but "problems". No wonder I bemoan the fact that this country faces an ethical crisis. Leadership is certainly lacking at the highest levels of society. Why should the rest of us play by the rules if Jobs and Gore don't?

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