Steve Jobs Apologizes for Apple's Past Stock Option Practices

Authored by Mark Hefflinger on October 4, 2006 - 1:04pm.

Cupertino, Calif. - Apple CEO Steve Jobs on Wednesday apologized for the company's past practice of backdating stock option grants. The company said that a special committee of outside directors has found that stock option grants made on 15 dates between 1997 and 2002 appear to have had grant dates that preceded the approval of those grants. The committee said that Jobs was aware of the favorable grant dates in a few instances, but did not benefit and was unaware of the accounting implications. The investigation also raised serious concerns regarding the actions of two former officers, but found no misconduct among any member of Apple's current management team. "I apologize to Apple's shareholders and employees for these problems, which happened on my watch," said Jobs. "We will now work to resolve the remaining issues as quickly as possible and to put the proper remedial measures in place to ensure that this never happens again." The company also announced that Fred Anderson, Apple's former CFO, has resigned from its board of directors. Anderson, who served as CFO from 1996-2004, informed the company that he believes it is in Apple's best interests that he resign from the board at this time.
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