Apple's stock option irregularities investigation: Fred Anderson resigns from board; more

Apple has announced the culmination of investigation by a special committee of its board of directors, which has produced several findings including:

• The investigation found no misconduct by any member of Apple's current management team.
• The most recent evidence of irregularities relates to a January 2002 grant.
• Stock option grants made on 15 dates between 1997 and 2002 appear to have grant dates that precede the approval of those grants.
• In a few instances, Apple CEO Steve Jobs was aware that favorable grant dates had been selected, but he did not receive or otherwise benefit from these grants and was unaware of the accounting implications.
• The investigation raised serious concerns regarding the actions of two former officers in connection with the accounting, recording and reporting of stock option grants. The company will provide all details regarding their actions to the SEC.

Most importantly, and most revealing, Apple also announced that Fred Anderson, Apple's former CFO, has resigned from its board of directors. The press release states:

"Mr. Anderson, who served as CFO from 1996 until 2004, informed the company that he believes it is in Apple's best interests that he resign from the board at this time."

Apple maintains that it will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants.

Feedback? Late-breakers@macfixit.com.

Resources