Yesterday I wrote an article that discussed the options problem beginning to brew at Apple Computer, Inc. (AAPL). Today, The Financial Times has an article Apple ‘falsified’ files on Jobs’ options (subscription required) that might prove harmful. The Financial Times article is worthwhile reading.
Steve Jobs, chief executive of Apple Computer, was handed 7.5m stock options in 2001 without the required authorisation from the company’s board of directors, according to people familiar with the matter.
Records that purported to show a full board meeting had taken place to approve Mr Jobs’ remuneration, as required by Apple’s procedures, were later falsified. These are now among the pieces of evidence being weighed by the Securities and Exchange Commission as it decides whether to pursue a case against the company or any individuals over the affair, according to these people.
I am uncomfortable with people familiar the matter. Just who are these people that are familiar with the matter? What happens if they are wrong? If some people know, why cannot the regulatory bodies inform all of us so that we no longer need to rely upon those people familiar with the matter? At least if the information was released from a regulatory body, all investors would be privy to material information at the same time. So now we have hearsay to rely upon. Maybe it is right, maybe it is wrong. But it definitely affected Apple's stock. At present, the stock is down 2.05% or a $1.67 to $79.85.
I have no positions in Apple Computer.
Leave a comment