Backdated stock options is just not comparable to insider trading.
Backdated stock options is just not comparable to insider trading.
https://www.cultofmac.com/443542/steve-jobs-apple-stock-back...
> According to Forbes, which broke the Apple stock-backdating story, Jobs’ award of 7.5 million shares got approved at a board meeting on August 29, 2001. At that point, Apple’s share price was $17.83. However, Jobs continued to argue over the point at which the options would vest. That resulted in Apple missing the deadlines for filing the proper information with the Securities and Exchange Commission and its auditors.
> It took until December for the parties to agree upon terms. At that point, Apple’s stock price stood at $21.01. Backdating gave Jobs a lower share price that, on paper, made him $20 million richer.
Morally speaking I find this comparable to insider trading. At the time Apple was worth approximately 300x less than it is now, so the $20 million damage to the shareholders back then would correspond to about $6 billion today.
(There's several books people have published about their time at Apple where he yelled at them sometimes, but I note all those people were distinguished engineers+ and he'd made them multimillionaires.)
I feel like that's not a good excuse for yelling at people, but I guess not having made anyone else a multimillionaire and no one having made me one, I don't know the proper decorum for them.
What? If he had just taken the original vesting terms without arguing he would have gotten the lower share price and the outcome would have been the same, right?
https://www.theguardian.com/business/2006/dec/30/citynews.ne...
> Apple Computer yesterday admitted that records of the board meeting that handed chief executive Steve Jobs 7.5m share options were fabricated.
> In fact both sets of options were cancelled in March 2003 before they were exercised.
So I guess it’s irrelevant?
But whatever compensation a company awards, they have to account for it and in some cases truthfully disclose it. It matters when the employee gains the ability to exercise the option; awarding an at-the-money option isn't the same as an in-the-money option (and wasn't in those days).
Lots of companies were doing this; in Apple's case, they falsified the minutes of their Board of Directors to invent a special meeting so they could pretend they had compensated Steve Jobs (and others) differently. (https://www.theguardian.com/business/2006/dec/30/citynews.ne...)