And he never cashed in those options because they were replaced in 2003 by a grant of restricted stock.
CEOs at other companies have been forced to resign for such activities. His job may be saved by the fact that he did not directly profit.
We would like to acknowledge the excellent research assistance from Ian Gow and Charles Wang in preparing this discussion.
We also appreciate the comments of Alan Jagolinzer, Thomas Lys, and Hayagreeva Rao.
As with Jordan, a different set of rules seems to apply to Jobs.
Here's a look at companies that have come under scrutiny for past stock-option grants and practices.
Consumers adore him for liberating them from the tyranny of expensive CDs and crappy radio.
(Headlines)The Dallas technology outsourcer acknowledged May 10, after a preliminary internal probe, that it had issued executive stock options that carried "effective dates" preceding the written approval of the grants.It had previously said a preliminary review suggested no intentional backdating occurred and any charges were likely to be minor. (Headlines) (Options chart) The maker of gene-testing devices said on Aug 1 that an internal probe has uncovered "certain documentation lapses" in its stock options grant processes from 1997 through 1999, including one instance when the option grant date should have been recorded differently.But Affymetrix said the review hasn't indicated a pattern of inappropriate options dating. 9, the company filed with the SEC to delay the submission of its second-quarter report because of a restatement to its financial statements for some options granted between 19.Still, given that (a) backdating helps make earnings look better than they are; and (b) Jobs is a huge shareholder of Apple (10.12 million shares, as of last April), how could he not benefit from this behavior? Jobs recommended some backdating dates for other employees.It turns out that Jobs did, indeed, receive backdated options—just not at his own direction. 18, 2001, when the stock stood at .01, the company gave Jobs a monster 7.5-million-share options grant dated Oct. By doing so, the company gave Jobs million in compensation for which it did not account properly. It also pretended the options grant was approved at a special board meeting, when no such meeting occurred. He received a massive grant that was approved at a phantom board meeting, though he didn't know about the phony meeting. This discussion comment focuses on several fundamental issues that confront researchers examining the backdating scandal and other related decisions.