Former Apple CFO Fred Anderson take parting shots at Apple CEO Steve Jobs

Apple Store“Before emerging from one of the most high-profile options backdating cases with little more than a slap on the wrist, former Apple (AAPL) executive Fred Anderson landed some parting shots of his own,” Peter Burrows reports for BusinessWeek.

“The Securities & Exchange Commission brought an apparent end to its investigation of the handling of stock options at Apple by charging two former executives, Chief Counsel Nancy Heinen and Chief Financial Officer and Director Anderson, for their roles in improperly issuing two large options grants in 2001. Except for a shareholder suit, Apple is likely out of the woods on the legal front. The SEC said it won’t bring enforcement actions against the company, citing Apple’s ‘swift, extensive and extraordinary cooperation in the Commission’s investigation.’ And having received a pass from the SEC, it is unlikely Apple will face any criminal charges from the Justice Dept., legal experts and financial analysts say. ‘Most investors think this is an all-clear,’ says Piper Jaffrey analyst Gene Munster,” Burrows reports.

Burrows reports, “But longtime CFO Anderson, known for his even-tempered, behind-the-scenes persona, did not go quietly. He has largely bucked any serious personal legal damage, settling charges against him and agreeing to pay a $150,000 fine and repay $3.5 million in windfalls from backdated options. He didn’t admit or deny guilt—though his lawyer issued a statement that points a finger at Apple Chief Executive Steve Jobs for his role in the scandal and calls into question a statement issued by Apple in December that exculpated Jobs for his role.”

Full article here.

[Thanks to MacDailyNews Reader “Alison” for the heads up.]

11 Comments

  1. Nothing about nothing.

    It appears to me that Anderson is giving a chronological chain of events surrounding the options grant. I don’t see where he is dissing anybody. I can see where others, desirous of web hits, would like to promulgate such a theory.

    nothing drives readers like half baked conspirarcies.

  2. Unfortunately for Fred, the SEC has already decided where the blame lies, and the buck stopped at his door, not Steve’s. Having agreed to pay $3.65M, if he felt so strongly that Steve was at all responsible, why not fight it? Right, he didn’t.

    So, it’s much ado about nothing.

  3. “Why run this story again?”

    Yeah, it just makes it seem like Anderson is making MORE comments, when it’s just a rehash of yesterday’s news. Even then, Anderson didn’t “say” anything. His lawyer read a statement. Typical yellow journalism. If there is no story, go out and create one.

  4. The problem here is the fact that stock options are a totally inappropriate means of compensating insiders at the expense of outsiders, meaning the long suffering stockholder. If stock is to be awarded, then it should be issued and the cost shown the day it is issued, and that cost added to the income of the recipient.

    Better yet, issue salary increases or bonuses, and do not dilute the value of the stock. The present method of accounting for options is a big mystery to all concerned, including the accounting profession. Kill options and stop the nonsense. Make companies accountable to the shareholders and stop insider trading dead. Otherwise you have a fraudulent market where the stockholder has no say. But it’s not business, it is government, that is the root cause of the problem with stock options, because government sets the rules, generally ignoring the recommendations of professional accounting bodies.

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