Backdating option stock
Never mind that Anderson, in a press release, claimed to have informed Jobs of the accounting implications of backdating options in 2001.Or that Jobs gave up his outstanding options, which were "underwater," in exchange for 5 million restricted shares in 2003.
That means the company incurs an expense equal to the difference in the share price between the two dates.
In a settlement announced concurrent with the complaint, Anderson - who neither admitted nor denied the allegations - agreed to pay back .6 million and never to do bad stuff again.
That seemed like a contradiction to me, but whatever.
I count no fewer than 38 top executives at 19 high-tech companies that have bit the dust over this stuff.
We're talking top executives at big-name companies like Apple, Altera, Broadcom, Brocade, Cirrus Logic, Comverse, KLA-Tencor, Maxim, Mc Afee, Rambus, Sanmina-SCI, Take Two, Trident, Verisign, and Vitesse. That's serious fallout considering that options backdating is legit as long as the company reports it and accounts for it accurately.