Should Steve Jobs be allowed to survive Apple’s options backdating scandal?

“Will Steve Jobs be able to survive Apple’s backdating scandal? More importantly, should he be allowed to survive? …There are many more investigations still ripening. Aside from the internal investigation, the SEC has launched a probe, and the company faces shareholder lawsuits from the scandal,” Rich Duprey writes for The Motely Fool.

Duprey writes, “And scandal it is, even if it happens to involve an icon of Silicon Valley. The probe by Apple found that not only was Jobs aware of the backdating that occurred at the company, but also intimately involved in selecting some of the dates at which an option was granted. That the committee investigating the matter absolved Jobs of any culpability seems a tad premature, if not silly. The SEC may reach a different conclusion, and you can be sure the trial lawyers will, particularly if it helps advance their case.”

“But as investors, why should we be so protective of Steve Jobs if he was engaged in a practice that gave away shareholder money to management and other employees? Yes, it’s recognized that Jobs has done a magnificent job of reviving a company that had long looked moribund. And the consumer products it is pushing out under his tutelage are at the cutting edge of technology and design. Yet that does not absolve him of his actions,” Duprey writes.

Duprey writes, “I’m not necessarily saying that Jobs should not be forced out of his position, but by the same token, I don’t think he should he be allowed to remain at the helm without some recompense to shareholders.”

Full article here.

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  1. I’m a shareholder, and I demand that we fire Steve (who has generated literally billions of shareholder value) and gets paid $1 per year, and hire an high-profile celebrity CEO (bring Jack Welch back from retirement maybe?) with a salary of $100 million per year, plus options and a big golden parachute to pay him out when he’s fired for poor performance.

    That will really teach Steve a lesson and leave us shareholders much better off in the long run!!!

  2. Could it not be argued that the recompense to the shareholders is the fact that he’s in charge and has made them a load of money? Of course, they may have made more without all this but I’m just playing devil’s advocate.

  3. Mr. Duprey writes…..

    “But as investors, why should we be so protective of Steve Jobs”

    But… is noted a the bottom: “Fool contributor Rich Duprey does not own any of the stocks mentioned in this article. “

    So I wonder where he is getting all of this so called honest indignation about Steve Jobs, when he cannot even write a short article without lying.

  4. I agree with no giving away shareholders money….

    As on that has a vested interest, I vote to let this one go.
    As a shareholder I am making money as Apple grows.
    Plus, over 400 percent gain I made has covered any lost money.

    Happy New Year!!!!

  5. Steve is not the only head honcho who was involved in backdating options. If all those involved in backdating were kicked out American business would be facing a major crisis. Steve did not profit from the backdating. Steve is safe.

    Steve will give shareholders a choice.

    Shareholders will overwhelmingly choose Steve over the jealous assholes that want his head on a platter.

  6. This guy clearly went to the “dictionary of loaded words” for this piece (scandal, fallout, a practice that gave away shareholder money to management and other employees, intimately involved, knowingly participated in fraudulent accounting maneuvers, but absolved him of complicity in the crime), and because of this, this shows some kind of CLEAR anti-Apple slant.

    This guy is a hack and is really just trying to make a bigger deal out of this than it is now. Apple filed their ammended documents, which should make the SEC happy. Apple’s investigation showed that Jobs did nothing really wrong, and honestly, Apple is just one of many, many companies involved in this because the rules were vague to begin with.

    It’s not in the best interest of the shareholders to can someone like Jobs unless crimes were clearly committed. Yeah, ok, $85 million has been restated. As an Apple shareholder, I’d gladly lose that rather than the BILLION plus $$$ that would be lost if hacks like this guy got Jobs removed as CEO.

  7. Oh, what the hell!!!!

    I Feel like backdating some Apple shares to good ol Steve, just to say damn good job at making us money!

    Plus the amount of problems on my Apple verses my PC- well, hell- none on the Apple and the PC is slugging it out to survive.

    Good enough for me to Pardon!

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