First, a refresher: Backdating stock options really means giving an investor stock options below the current stock price, thus making them immediately worth money (as the recipient could buy stock at the low price and immediately sell it for a profit). Companies do this by pretending the stocks were given earlier when the stock was at the lower price. It's illegal if documents are forged, the company doesn't tell shareholders, or the company doesn't properly reduce reported earnings in its financial statements or taxes. [University of Iowa]
"Steve Jobs is a typical backdater," crows the DealBreaker financial blog, reprinting Wall Street Journal commentary saying Jobs knew Apple improperly accounted for these options, despite his claims of ignorance. [DealBreaker]
As DealBreaker notes, the losers in this situation are the shareholders whose stock was devalued. But if they press charges, Apple stock will worsen — they're damned both ways. Jobs is also safe because the company knows it needs him, and a Valleywag reader notes that since Apple kicked the former CFO off the board, at least one scapegoat has been sacrificed.
Dozens of other CEOs may not be so lucky. Only 16 companies have fired executives over backdating, says BusinessWeek; at least 135 are under government investigation or internal review. [BusinessWeek]
Another BusinessWeek piece lists terms for stock options tricks: repricing, rejiggering, speed-vesting, backdating, spring-loading, "and more." Anyone have more ideas, real or fake? I'd like to add sweet-sweet-loving, bum-rushing, and fizzerscrumptilicting. [BusinessWeek]
