Backdating employee stock options accounting and legal implications updating a row in sql using php
He will pay almost .5 million in restitution for the January 2001 stock options that he exercised, reflecting the profit gained from the earlier grant date.He will also pay a 0,000 fine, and will not be barred from serving as an officer or director of a public company, a penalty that Heinen faces if found liable.This is legal if properly recorded, but many companies didn't record the expenses involved with this practice, and the SEC has been investigating several companies in connection with backdating.Some CEOs have been forced to step down or fired over their role in the mess, but , considered by many as one of the most indispensable CEOs in the technology industry, if not the business world.
Apple spokesman Steve Dowling declined to comment on Anderson's allegations beyond noting that the SEC filed its lawsuits against former Apple employees, and no current members of the company's executive team.Former Apple Chief Financial Officer Fred Anderson issued a statement Tuesday claiming that he advised Apple CEO Steve Jobs of the accounting implications of backdating in January 2001, contrary to Apple's previous statements that Jobs had no idea of the ramifications.Anderson's statement came just after the Securities and Exchange Commission filed a lawsuit against Nancy Heinen, the former general counsel at Apple, saying her actions led to "fraudulent" stock option backdating at the company.The agency is also saying that she falsified records to cover it up and prevent Apple from having to record expenses associated with those dates.
"Every action Nancy took was fully understood and authorized by Apple's board of directors, was consistent with the interests of shareholders--and consistent with the rules as she easily understood them." "Every action Nancy took was fully understood and authorized by Apple's board of directors, was consistent with the interests of shareholders--and consistent with the rules as she easily understood them," said Heinen's attorney, Miles Ehrlich of Ramsey-Ehrlich.The onus to maintain accurate financial statements is the responsibility of both CFOs and CEOs.“It falls on them because the statements were materially false at a time they were representing those statements were accurate,” says Mark Fickes, partner at Braun Hagey & Borden and former lead trial counsel for the SEC in the Maxim/Jasper trial. The case is notable for two reasons: it has been one of the few times that an options-backdating case actually went to trial, and it shows that CFOs and chief executives have no way to hide from improper expensing, even years later. Jasper appealed the case on trial errors he claims violated his rights, but did not dispute his knowledge of or involvement in the backdating scheme.