What? I didn’t do nothing!
Independent Online Edition > Business News — This can’t be good news for anyone involved. The question remains, what hotshot valley lawyers were behind this idea. Is this the thanks you get for saving a company?
Apple Computers, the maker of the iconic iPod, has admitted its profits for the next four years could be cut after uncovering stock options irregularities.
Shares in the group fell sharply yesterday because of uncertainty over the extent to which Steve Jobs – feted for his turnaround of the company he founded 30 years ago – may become more seriously embroiled in Wall Street’s latest scandal.
In a filing to the US financial regulator, Apple has said all its earnings issued since September 2002 should not be relied upon. Apple is one of about 80 companies under investigation for peculiarities in the way executives were granted share options. As the scandal has widened, company after company has been accused of illegally back-dating share options to maximise profits for executives, when they are cashed in years later.
Whatever happens, I think this outlines a major problem with investing in Apple, and Apple as a company. What happens if something happened to Jobs? I think this company would be gone without him.
Apple may have to find out of there’s a future after Job’s. Even if they survive SEC rulings and public scrutiny, it will impact the future of the company. It will be interesting to see how Job’s ego may clash with the best interests of the company and investors. He was at the helm, and ultimately it’s his responsibility. You would have thought somebody would have learned something from the 90’s.
So Apple having found the problem, they reporting it to the SEC and the press, them coming clean about the whole thing when the find out about it after internal audits and now calling for external audits….none of that can be taken into consideration? No no….EVERYONE has been waiting to pounce upon Steve Jobs and Apple for so long that even if nothing comes of this everyone will drag this out until we’re totally sick.
I’m not an Apple user either, I don’t own one thing made by Apple…just point out the obvious and how SHOCKING it is that Dvorak has jumped all over this.
Gibson I agree that a vulnerability may have been found in Apples ipod armor. The question is, who is posed to take advantage of it, MS and their new player? By the way I do own several Mac’s, along with PC’s. Let’s face it, Job’s can be an abrasive SOB, so of course he has enemies. What CEO of a major company doesn’t? Remember the glee resulting from Fiorina’s downfall, if you call it that. Job’s has been pushing around the music industry for a while, I’m sure they want some pay back.
#3 I’m not an Apple user either, I don’t own one thing made by Apple…just point out the obvious and how SHOCKING it is that Dvorak has jumped all over this.
Comment by Gibson — 8/5/2006 @ 3:08 am
I’m SHOCKED! John Dvorak, who operates a blog that deals with issues related to the tech business and technology, has posted a brief article about something seemingly important that is related to a pretty big tech company.
Yep… He sure “jumped all over it.” You almost hear the saliva sloshing around in his jowels…
Don’t you think that maybe your feigned indignance is a tad hyperbolic?
“Apple is one of about 80 companies under investigation for peculiarities in the way executives were granted share options. ”
And the other 79 “tit Wringered” will be outed when?
This also will pass. Apple is one of only a few truly innovative tech companies. It has always created unique products. Apple, especially under Jobs, leads – does not follow, and invents – does not copy, as does Microsoft. This options crap is but a fly on the back of a thoroughbred.
I wonder if any of the other 79 companies would tank without the people in trouble. From all appearances, Apple’s continuation of its recent success is almost totally dependant upon Steve Jobs, and that is not a good thing for any corporation.
Bob, what innovation? Apple has yet to release a product that someone else didn’t come up with and have on the market first. All they did was learn how to collect a cult following and sell a redesign of someone else’s product.
The Wall Street Jpurnal article that originally blew this story on options in March indicated:
“Granting an option at a price below the current market value, while not illegal in itself, could result in false disclosure. That’s because companies grant their options under a shareholder-approved “option plan” on file with the SEC. The plans typically say options will carry the stock price of the day the company awards them or the day before. If it turns out they carry some other price, the company could be in violation of its options plan, and potentially vulnerable to an allegation of securities fraud.”
I worked at Apple during the ‘early days’. Steve is brilliant, but he surrounds himself with even more brilliant people and then challenges them to do better. Apple will be ‘Insanely Great’ even if Steve takes a holiday. They know how to do this stuff now. I was the most fun I have ever had in my life working at Apple and I’m sure it’s even better now.
I want my wide-screen iPod!
12. Knowing who is brilliant, putting them in the right positions and inspiring them to do their best is an invaluable skill. If that is what Jobs does and he winds up on the sidelines, that is as bad or worse as if he did it all himself.
and I want my widescreen iPod, too!
#5. Oh I’m sure John will treat this ongoing story with the utmost care and understanding and not try to rial anyone up to generate more hits to his blog. We all know about his deep respect and love for the Mac community and I’m sure his writings on this subject will enhance and enlighten the world around us with his moderate insight and diplomatic attitudes.
Mac fans are often zealots. The platform is ok, but in their minds is the Greatest Invention of Humankind, that will by itself cure cancer and famine in the world, and it’s a lifestyle and makes you a better person and it’s a form of culture, and makes you more creative and, somewhat of a revolutionary.
So, if a Company, personified by a man like Jobs is under attack they, as a cult, gather aroung his “Techno Pope” and cry heresy !
Guys: it’s just a friggin company, a business, a toymaker for the wealthy…and like the rest of us subdue to the two sole certainties in life: Death and taxes.
LOL! Relax fellas. Apple’s stock had shot back up within a couple of bucks of where it was by the close of the market Friday.
Restating stock options will have no impact on the actual operations of the company.
Joao, I’ll wear that hat. WWDC is only hours away and I can barely wait.