Apple Case Study

Considering apple Inc. CEO Steve Jobs salary of $1,[1] some may struggle that his compensation ought to be a model for other executives. However, his lower-ranking cash compensation is more than offset by his other(prenominal) equity awards, including stock options that were back go out. The U.S. Attorneys Office has undefended a criminal investigation into the stock options backdating scandal at orchard apple tree.[2] Unfortunately for Apple shareholders, the familiarity has been less than forthcoming nigh Jobs involvement in any improper backdating. In June 2006, Apple announced that some of its past stock option grants were backdated, including options awarded to Jobs.[3] The company stated that it found no misconduct among its actual management, though separately it announced the departure of one of its directors and former chief financial officer Fred Anderson. Apple too admitted that Jobs was aware that favorable grant dates had been selected, notwithstanding then emphasized that he did not benefit from them.[4] Apple later noted there were two questionable grants to Jobs. angiotensin converting enzyme of them, dated Jan. 12, 2000, was not backdated, even though it received approval six days after it actually was granted.[5] Apples stock price on Jan. 12 happened to be its final level for a six-month period.

[6] Apple noted that the other grant, dated Oct. 19, 2001, was backdated. This grant was approved at a meeting that did not even take place, though no member of current management was aware of the irregularity, and resulted in a $20 one thousand million charge to the company.[7] Throughout this affair, Apple has continued to maintain that Jobs did not benefit from this backdated grant; however, a closer look suggests otherwise. In January 2000, Jobs received a stock option mega-grant potentially deserving $548 million if Apples stock price change magnitude just 5 percent a year.[8] He also was given an aircraft that year worth $90 million.[9] By October 2001, these options were underwater, center that the stock options would have... If you want to get a full essay, align it on our website: Orderessay

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