It took until December that year until terms were finally agreed upon, at which point Apple’s stock price was .01.Backdating was then carried out to give Jobs a lower share price which, on paper, made him million richer.The same judge sentenced Reyes to 21 months in prison after a first conviction in 2007 that was appealed.Last March Reyes was already convicted of frauds and false statements but the jury acquitted him of a conspiracy charge.
Some people even suggest Jobs might have to step down as Apple CEO. Stock options are frequently tied into executives’ compensation, giving them the option of purchasing a certain amount of stock at a set price.
It’s a nice bonus if the company has increased in value.
(who broke the backdating story), Jobs was awarded 7.5 million shares approved at Apple’s August 29, 2001, board meeting. However, because Jobs continued to argue over the point at which they would vest, Apple missed the deadlines it needed to file the right information with the Securities and Exchange Commssion and its auditors.
The scandal also challenged people’s perception of Apple as “the good guys” and Jobs’ as a CEO who wasn’t money-hungry.
(Over the next year, this perception that Apple was no longer a scrappy underdog fighting the establishment would again be challenged when Apple sought legal action against bloggers for reporting on the company’s trade secrets.) In the end, the SEC announced in April 2007 that it would not pursue a case against Apple — in part because the company had set up an internal investigation into the stock scandal so rapidly.