RSSFormer Apple counsel settles options backdating charges
By Ed Oswald | Published August 15, 2008, 5:02 PM
Apple's former general counsel will pay the US Securities and Exchange Commission some $2.2 million in fines to settle charges related to the Cupertino company's stock options scandal.
SEC officials said Nancy Heinen's fine was comprised of $1.6 million in what it called "ill-gotten" gains, plus interest, and a $200,000 penalty. The former executive is one of two from the company to agree to pay fines. Like former Apple CFO Fred Anderson -- who was fined $3.5 million -- Heinen is neither admitting nor denying guilt.
As part of her punishment, she would not be permitted to serve as an officer at any public company for a period of five years, nor practice law in cases before the SEC for three years.
Heinen was charged in 2007 with manipulating dates on option grants in 2001 and 2002 to make them appear as if they were granted earlier. This action would make the options more valuable for the recipient. Though he was under investigation for a time, CEO Steve Jobs was later cleared.
Investigations into the stock options backdating practice at Apple were closed this year, so its unlikely any more charges will be brought against current and former executives. Another company Jobs was involved in, Pixar -- which has since been acquired by Disney -- is still under investigation.
Apple has declined to comment on Heinen's settlement.
Backdating of options for high level execs is legal IF it is shown as an expense. The problem the Dell and Apple got into is that they didn't do this.
Both boards claim ignorance and blame the legal department but, at the end of the day, the Board of any company is responsible because the CEO and the CFO must sign off on all accounting papers sent to the SEC.
Of course, options aren't as popular as they once were so this may be a moot point going forward.
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|Anyone who is responsible for doing this illegally should be held accountable!
Note, under current law, backdating options is not necessarily illegal! Although I think there is good reason to suggest that they should be.
What is interesting is to listen to the fanboys here make this a 'partisan' issue as they neglect others such as the "Dell accountants (who) spank themselves"...over a much longer period with much more devastating and deleterious effects to shareholders and others.
http://www.channelregist..._probe_results_released/
oh...
So spread the love around fanboys and show us how your ire extends to ANYONE who does something illegal and not just your favorite suck buddies.
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|...CEO Steve Jobs was later cleared.
Right! That SOB was right in the middle of it. I hope he is paying these fines for his ex-cheaters. They saved his arrogant a$$!
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|Yes cause if you made $1 a year you would want to find a way to get some money too
http://www.nytimes.com/p...CPAY_GRAPHIC/index.html
http://www.news.com/2100-1047_3-6049166.html
http://www.appleinsider....ained_at_1_in_2005.html
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|His $1 a year is another scam to make a$$holes and fanboys feel sorry for him and support him even though the SOB broke the law and let his subordinates take the hit! Put all the links you want about his $1 per year, it still does't prove he wasn't a crook!
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|Jobs' $1 per year pay is just a way to avoid taxes. Plenty of CEOs/High paid corporate employees do it, and just live off what they make with stocks, and other options.
If I recall, Jobs was in the top 12 of most paied CEOs of 2007 when you took his options into account, and not just salary alone.
http://www.forbes.com/20...ter-cx_ec_0502tech.html
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|LOL!
Yup, as if what he makes off stocks and other investments don't provide tax exposure!
Yup, why make say, an extra million a year or two, if you might have to pay some portion of it to taxes.
And you don't refuse income simply to avoid taxes, you economic dolt. There are PLENTY of ways to offset income and to minimize taxes.
But isn't life simple when all you do is point figures and blame others...
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|What a way to go. Just FYI:
-There is no payroll tax on stock options.
-Stock options if done correctly can be considered capital gains with flat tax of 15%.
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|I didn't say he didn't pay taxes, I said his salary is set so low so that he pays LESS taxes.
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|The point stands!
Avoiding earning $100 so you don't have to pay say $10 in taxes (assuming deductions) is still as asinine notion.
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|also doesn't prove he was
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