Apple’s options disclosures leave plenty of unanswered questions

“Apple Computer moved last week to answer questions about its problems with stock options, but in the end it left plenty unanswered, including the role played by Fred D. Anderson, who resigned Wednesday from the company’s board,” Laurie J. Flynn reports for The New York Times.

“Mr. Anderson resigned after a special committee of directors disclosed that it had found irregularities with stock option grants made between 1997 and 2002, a period when he served as chief financial officer. The company said only that Mr. Anderson believed that it was ‘in Apple’s best interests’ that he leave the board,” Flynn reports.

Flynn reports, “Mr. Anderson was once a trusted adviser to Steven P. Jobs, Apple’s chief executive, and played an important role in the company’s financial turnaround. Analysts said he appeared to be paying the price for the problems with Apple’s stock options grants even through his degree of control over the program was unclear. ‘I would say that Jobs and the Apple board threw Fred under the bus to keep it from hitting them,’ said Lynn E. Turner, a former chief accountant at the Securities and Exchange Commission and a managing director at Glass, Lewis & Company, which advises institutional investors on corporate governance.”

Flynn reports, “The company reiterated that it expected to restate its financial results to account for the extra compensation expense related to the options. Mr. Foley questioned why the company had not yet quantified the potential impact for investors. ‘After three months, you don’t know what the number is,’ he said. ‘Come on.'”

Full article here.

Related articles:
Apple shareholders await earnings restatements; Steve Jobs still not in the clear – October 06, 2006
Former CFO Anderson helped turn Apple Computer around – October 05, 2006
Wall Street unshaken by results of Apple stock options investigation – October 05, 2006
Is Apple rotten at the core? – October 05, 2006
Analyst: Anderson, Heinen may be former Apple executives responsible for irregular options grants – October 05, 2006
Analyst: Apple restatement due to options irregularities not expected to be significant – October 04, 2006
Apple’s special committee reports findings of stock option investigation – October 04, 2006
Shareholders allege Apple execs reaped ‘millions’ in unlawful profits – August 23, 2006
How options-backdating irregularities can affect your Apple Computer stock – August 23, 2006
Apple’s options imbroglio: Mac-maker granted options at or near key events in company’s history – August 18, 2006
Apple added to Nasdaq’s list of ‘delinquent companies’ – August 18, 2006
Apple unlikely to be delisted by NASDAQ – August 16, 2006
Apple CEO Steve Jobs drawn into stock options scandal – August 15, 2006
Apple announces update regarding stock option grants – August 11, 2006
As expected, Apple delays quarterly results due to stock-options grants review – August 11, 2006
Some stock options grant decisions were made by Apple board, and potentially, CEO Steve Jobs – August 10, 2006
Disney: no material impact from Pixar options – August 09, 2006
Pixar options draw scrutiny – August 08, 2006
Apple stock options scandal? What scandal? – August 07, 2006
Class action lawsuit over stock options filed against Apple Computer, Inc. – August 04, 2006
Wall Street forgiving of Apple’s stock option irregularities; CEO Jobs unlikely to be terminated – August 04, 2006
Apple’s stock option irregularities escalate into a scandal as world awaits Steve Jobs’ WWDC keynote – August 04, 2006
Apple warns of profit restatement dating back to 2002 – August 04, 2006
Apple loses 3.5% to $67.15 in premarket trading – August 04, 2006
Apple announces update regarding stock option grants – August 03, 2006
Shareholder’s options suit against Apple alleges ‘striking pattern that could not have been chance’ – July 11, 2006
Apple announces update regarding stock option grants – July 05, 2006
UBS: stock options probe unlikely to hurt Apple – June 30, 2006
Apple joins growing list of companies entangled in stock option ‘irregularities’ – June 29, 2006
Apple to investigate stock option grant ‘irregularities’ made between 1997 and 2001 – June 29, 2006
Fred D. Anderson joins Apple Board – June 08, 2004
Apple CFO Anderson to retire on June 1, 2004; will join Apple’s Board of Directors – February 05, 2004


  1. I once knew a man who knew a man who told me that he knew what the real deal was with this company that he had heard had some unusual issues with something from years ago. The man said he was qualified to comment on it just because it’s what he did for a living and that his source was foolproof because he had worked in the analysis business for years after having been a handyman and gardener. I knew better, though, because I had my own friend . . . and he’s never wrong.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.