Apple and backdating boondocks episode online dating
It took until December that year until terms were finally agreed upon, at which point Apple’s stock price was .01.
Backdating was then carried out to give Jobs a lower share price which, on paper, made him million richer.
However, Apple’s former CFO Fred Anderson, who was on Apple’s board, and general counsel Nancy Heinen, did have complaints made against them.
Ultimately, Anderson resigned and Heinen paid a .2 million fine without admitting liability.
Additionally, companies can use backdating to produce greater executive incomes without having to report higher expenses to their shareholders, which can lower company earnings and/or cause the company to fall short of earnings predictions and public expectations.
Corporations, however, have defended the practice of stock option backdating with their legal right to issue options that are already in the money as they see fit, as well as the frequent occurrence in which a lengthy approval process is required.
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.
In essence, the revision enabled companies to increase executive compensation without informing their shareholders if the compensation was in the form of stock options contracts that would only become valuable if the underlying stock price were to increase at a later time.It allegedly failed to inform investors, or account for the options expense(s) properly.