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Steve Jobs implicated in Pixar stock option dust-up


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#1 Hurmoth

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Posted 11 February 2007 - 00:27

The smoldering controversy over the Apple chief's involvement in stock options reignited once again on Friday after curious timing in a Pixar stock option was discovered by the Wall Street Journal.

Quoting an anonymous source, the financial paper placed Apple chief executive Steve Jobs in even deeper hot water than before by suggesting that he had signed a job contract for Pixar's chief creative officer John Lasseter which gave the premier film director a questionable stock option bonus.

The ten-year contract, finalized in March 2001, saw Lasseter granted one million shares whose initial value was dishonestly backdated to a date three months before the deal had been completed -- coincidentally, the same day Pixar shares had been at their nadir in December of 2000. The terms effectively guaranteed that Lasseter would turn an immediate $6.4 million profit the day his new employment took effect, even before he received his first paycheck.

Then the CEO of Pixar, Jobs was known to have helped work out the details of the contract and had to put his signature to the deal for it to take effect, the Journal's informant said. However, doubt exists as to how much conscious involvement the company head truly had in the agreement. While his name on the paper implies tacit endorsement of the dubious grant, Jobs himself may not have actually chosen the date.

Still, an intense level of legal scrutiny is bound to follow the often controversial chief. Both the federal government and Pixar's parent company Disney (on whose board Jobs sits) are said to be actively investigating the studio's handling of stock options. And as always seems to be the case these days, Jobs is under the close watch of the government for irregularities in stocks at his very first company, Apple.

It comes as little surprise that none of the involved parties were prepared to comment to the Journal on the day's news. Disney forwarded requests to speak to Jobs to Apple, which in turn said he was unavailable; a similar response followed in attempts to contact Lasseter. Disney itself chose not to comment on the matter.

Shareholders were suitably unimpressed and thrashed Apple's stock value, which tumbled $2.91 to close at $83.27 by the end of trading on Friday evening.


Posted Image News Source: AppleInsider


#2 Boz

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Posted 11 February 2007 - 00:35

Posted Image News Source: AppleInsider


As I said many times before, if a person can do this to their shareholders and just look at it's own benefit, how do you expect this to be open and sincere with it's customers. You really can't.

#3 goji

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Posted 11 February 2007 - 00:36

I'm wondering how, short and long term this could affect public perception of the Apple brand. Though MS went through HOT waters in the late 90's, they haven't gone anywhere, but then again they were at the very top of the mountain.

Apple on the other is seeing a new golden era so to speak. Do they just, fall backwards?

#4 vetbangbang023

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Posted 11 February 2007 - 01:20

I'm wondering how, short and long term this could affect public perception of the Apple brand. Though MS went through HOT waters in the late 90's, they haven't gone anywhere, but then again they were at the very top of the mountain.

Apple on the other is seeing a new golden era so to speak. Do they just, fall backwards?

It's tough because the heat is going to fall on Steve, not the company. However, Steve is the face of the company so will the public tie the two together? To make it worse, after scandals like the Adelphia and Enron stories, the public is tired of this nonsense.

#5 Tony.

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Posted 11 February 2007 - 01:53

I haven't been keeping up on this, can someone explain what's been going on and what would this result in if this goes bad for Steve?

#6 PyX

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Posted 11 February 2007 - 01:56

I didn't understand anything in this whole affair, but it looks like the "Scandale des commandites" that happened in the Liberal Party of Canad, just that almost the whole party had something to do with the scandal.

#7 vetMathachew

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Posted 11 February 2007 - 02:00

It's tough because the heat is going to fall on Steve, not the company. However, Steve is the face of the company so will the public tie the two together? To make it worse, after scandals like the Adelphia and Enron stories, the public is tired of this nonsense.


In the eyes of many, Apple is Steve Jobs and Steve Jobs is Apple. While Apple may come out clean, if Jobs goes down as a result, it could bode ill for Apple, which I wouldn't want to see.

Maybe with all that money they'd save from paying Jobs, they could lower the price on their systems? Ha! One can dream :)

#8 osirisX

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Posted 11 February 2007 - 02:10

I haven't been keeping up on this, can someone explain what's been going on and what would this result in if this goes bad for Steve?


Basically Steve or someone else in the company has backdated stock options to make them favourable for people. So that they make a huge amount of money out of the stock options. This is illegal and if found guilty he or the people who did it will go to jail. Apple's stock price would then plummet.

#9 DreadBoat89

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Posted 11 February 2007 - 02:40

if a person can do this to their shareholders and just look at it's own benefit, how do you expect this to be open and sincere with it's customers. You really can't.

well time and time again, our boy steve has proven that he is childish towards microsoft, overemphasizes a lot, and isn't trustworthy.

#10 xxdesmus

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Posted 11 February 2007 - 04:17

lol... can we just put him on trial already? Lock him up and move on. geez... :blink:

#11 iwod

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Posted 11 February 2007 - 04:37

Basically Steve or someone else in the company has backdated stock options to make them favourable for people. So that they make a huge amount of money out of the stock options. This is illegal and if found guilty he or the people who did it will go to jail. Apple's stock price would then plummet.


From what i know so far.
Steve has been using the backdating method to give favorable terms/ benefits to others that worked for him.
Backdating method in itself is not illegal if it is properly accounted for in the Yearly Financial paper.

#12 APH-Alex

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Posted 11 February 2007 - 04:40

In the eyes of many, Apple is Steve Jobs and Steve Jobs is Apple. While Apple may come out clean, if Jobs goes down as a result, it could bode ill for Apple, which I wouldn't want to see.

Maybe with all that money they'd save from paying Jobs, they could lower the price on their systems? Ha! One can dream :)


Uhh... doesn't he get payed $1 USD a year though?

#13 vetSimon

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Posted 11 February 2007 - 04:41

This is going to end badly...

Hopefully he will be able to come back some day. And keep the flamewar out of this, please, I'm tired of that.

#14 whitebread

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Posted 11 February 2007 - 04:57

I hope Jobs gets his pompous *** handed to him on a platter, served at meal time in jail. :ninja: I like Apple, I loathe Jobs.

#15 I am Reid

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Posted 11 February 2007 - 05:05

Well, from now on he is going to be known as $teve Jobs.


You people are such hypocrites.