Home / Apple suffers options hit but Jobs is cleared

Apple suffers options hit but Jobs is cleared

The firm is taking a charge of almost US$90million and has had to restate its earnings for the past three years for wrongly accounting for stock options grants.

Apple revealed this in a regulatory filing to the US Securities and Exchange Commission (SEC) last month.

In the filing Apple also reiterated the findings of an internal investigation into its stock options practices that cleared current management, including CEO Steve Jobs, of any wrongdoing in October 2006.

Apple stated that the ‘special committee’ set up to look into the granting of stock options found “no misconduct by current management” and that Jobs “did not receive or financially benefit from these grants”.

Apple said in its filing that it found irregularities in the issuing of grants made between 1997 and 2001.

The company stated that after 2002 there were no stock options wrongly accounted for, as in that year the company had made “significant changes” to its granting practices.

More than 150 technology companies have so far been drawn into the stock options scandal that has engulfed the US, including the likes of McAfee, Broadcom, Sycamore Networks, Rambus and Brocade.

Last month Juniper Networks announced it would have to take a US$900million charge for improperly dating stock options grants.

Follow us to get the most comprehensive technology news in UAE delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.