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October 4, 2006

money

Apple reports on “irregularity” investigation; former CFO Anderson resigns

Posted Oct. 4, ’06, 2:48 PM PT by Dan Moren
Category | Money

Fred AndersonWe first reported on Apple’s stock option irregularities back in July; now the matter seems to have come to some sort of resolution. Despite no action by the SEC or other government bodies, Apple had launched an internal investigation into the allegations, which confirmed that stock option grants had been backdated in order to provide financial gain.

There were suggestions left and right that Steve Jobs might have to step down, but when the dust cleared this afternoon, it was not Jobs but former Apple Chief Financial Officer and current Apple board member Fred Anderson (pictured) that bit the bullet and resigned. Anderson served as CFO from 1996 to 2004, at which point he stepped down and was appointed to the board. Today, he said his resignation from the board was in the company’s best interests.

The investigation also cleared Apple’s current management of any wrongdoing—the most recent backdated options were from January 2002. Jobs did not benefit from any of the options, nor was he aware of the accounting implications, but he apologized anyway:

“I apologize to Apple’s shareholders and employees for these problems, which happened on my watch. They are completely out of character for Apple,” said Steve Jobs, Apple’s CEO. “We will now work to resolve the remaining issues as quickly as possible and to put the proper remedial measures in place to ensure that this never happens again.”
Apple is keeping the SEC apprised of the investigation, specifically as related to two unnamed former officers in connection with the irregularities.

[Thanks, Chris and Jason]


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