Watchdog May Still Quiz Jobs On Options

The Age

Thursday January 11, 2007

JESSE HOGAN, With AGENCIES

APPLE co-founder Steve Jobs is renowned as an expert seller of his company's wares, but it was the way he bought its shares that attracted regulators.

Mr Jobs was forced out of Apple in 1985, but returned 11 years later as chief executive. He presided over the release of the iMac computer range, the iPod music player and now the iPhone - although a share investigation has taken some of the lustre off the latest launch.

Between 1997 and 2006, when Apple's share price increased 500 per cent, Mr Jobs accepted only $US1 ($A1.28) in annual salary. He was instead given stock options, which gave him the right to buy shares at a set price - usually the price on the day the option was granted.

Last July, the company revealed it had uncovered 6248 instances of irregularities in the awarding of stock options.

An internal investigation found Mr Jobs was wrongly given an option for 7.5 million shares at $US18.30 in 2001, instead of at $US21.01.

Documents showed the share offer was approved at a board meeting but Apple has since admitted the meeting never occurred.

Mr Jobs did not exercise the share option deal but, if he had, it would have saved him $US20.3 million.

A board committee cleared him of impropriety but acknowledged he "was aware or recommended" favourable options dates for other Apple executives.

Despite Apple exonerating Mr Jobs, 51, US media is reporting that the Securities and Exchange Commission and the Department of Justice are considering questioning him. -- With AGENCIES

© 2007 The Age

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