According to a study by Erik Lie, a finance professor at the University of Iowa, more than 2,000 companies used options backdating in some form to reward their senior executives between 19.
The SEC’s opinions regarding backdating and fraud were primarily due to the various tax rules that apply when issuing “in the money” stock options vs.
The Boston Retirement Board claims new evidence indicates that the executives wasted more than 5 million of the extra value of backdated stock options granted to Steve Jobs.
The documents are said to prove that Jobs and other executives did not follow the required company policies, since they were aware that the options awarded to Jobs were not dated as of when they were awarded.
However, the specific evidence and documents that back up these charges have yet to be revealed and may have to go into an amended or sealed version of the complaint to be filed later.Cupertino (CA) - Find today published an article that shines the spotlight on Apple’s stock option backdating game once again.The website reports that nine Apple executives, including CEO Steve Jobs, are summoned to appear before court in connection with stock options accounting practices.Some people even suggest Jobs might have to step down as Apple CEO.Options backdating is the practice of altering the date a stock option was granted, to a usually earlier (but sometimes later) date at which the underlying stock price was lower.This is a way of repricing options to make them valuable or more valuable when the option "strike price" (the fixed price at which the owner of the option can purchase stock) is fixed to the stock price at the date the option was granted.Cases of backdating employee stock options have drawn public and media attention.This is where the stage was set for Steve's affection and learning curve for technology.His father would show him how to dismantle home electronic appliances like radios and TVs.December 28, 2006: As the rest of the country enjoys a much-deserved holiday, Apple gets embroiled in a stock “backdating” scandal.The news, centered on the dubious awarding of stock options to Steve Jobs, prompts Apple share prices to fall.