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December 28, 2006: As the remainder of the nation enjoys a much-deserved vacation, Apple will get embroiled in a inventory choice “backdating” scandal.
The Apple inventory choice backdating scandal
Backdating inventory choices refers back to the follow of writing an settlement in regards to the award of inventory choices to make it look as in the event that they have been awarded sooner than they have been. Firms regularly tie executives’ compensation to inventory choices, which provides execs the choice of buying a specific amount of inventory at a set value. The decrease this “strike price” is, the cheaper the chief can purchase the inventory. When these choices vest after a time period, the chief can promote them on the present share value. It’s a pleasant bonus if the corporate has elevated in worth.
Backdating is authorized as long as it’s disclosed appropriately. When it isn’t — and due to this fact turns into lacking info for buyers — the follow breaks the legislation.
In keeping with Forbes (which broke the Apple inventory choices backdating story), Jobs was awarded 7.5 million shares, authorized at Apple’s board assembly on August 29, 2001. At the moment, Apple’s share value was $17.83. Nonetheless, Jobs continued to argue over the purpose at which they’d vest. In consequence, Apple missed the deadlines it wanted to file with the Securities and Alternate Fee.
It took till December that 12 months for the 2 sides to agree upon phrases. By…
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Author : tech365
Publish date : 2025-12-28 19:15:00
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