Apple: Bad To The Core

From the WSJ: Former Apple CFO Fred Anderson issues statement blaming Steve Jobs for backdated options grant.

Anderson has just settled with the SEC so it would appear that he is clear from any fall-out. He is a former board member and appears to have more than a little axe to grind. From Anderson’s statement: "Fred was told by Steve Jobs in late January 2001 that Mr. Jobs had the agreement of the Board of Directors for the Executive Team grant on January 2, 2001. At the time Mr. Jobs provided Fred this assurance, Fred cautioned Mr. Jobs that the Executive Team grant would have to be priced based on the date of the actual Board agreement or there could be an accounting charge. He further advised Mr. Jobs that the Board would have to confirm its prior approval in a legally satisfactory method. He was told by Mr. Jobs that the Board had given its prior approval and the Board would verify it. Fred relied on these statements by Mr. Jobs and from them concluded the grant was being properly handled." 

At the same time, the SEC said it would not bring charges against Apple, but would charge its former general counsel. According to Reuters: "Apple’s cooperation consisted of, among other things, prompt self-reporting, an independent internal investigation, the sharing of the results of that investigation with the government, and the implementation of new controls designed to prevent the recurrence of fraudulent conduct," the SEC said in a statement.

Douglas A. McIntyre