Feds Looking At Two Ex-Apple Execs
By: David Utter
Stock-based employee compensation in the form of options was issued to Apple executives in a manner contrary to lawful practices, and Apple had to restate $84 million in earnings as a result.
The penumbra of blame has been darkening over Fred Anderson and Nancy Heinen, who formerly held significant positions within the Apple (AAPL) hierarchy. Anderson had been Apple's CFO and a member of the board; Heinen the general counsel and board secretary for the company.
It has been hinted that the two execs may figure prominently in federal investigations into Apple's stock backdating practices, which reportedly happened between 1997 and 2002. Both people have denied any wrongdoing, according to a Wall Street Journal report.
Apple has been quick to announce with their 10-K and 10-Q SEC filings last week that in the wake of its internal investigation into the backdating scandal, they had "complete confidence" in CEO Steve Jobs and the Apple executive team.
Some view the mercurial Jobs as being essential to the continued success of Apple. Under his tenure since his return to Cupertino, the company has enjoyed the arrival of the iPod media player and the healthy profit margins the hardware delivers.
Apple's exoneration in no way shuts down any interest either the DoJ or the SEC may have in pursuing a case against Apple or Jobs. That could be why the company may be eager to shift the focus of attention to its two former executives.
Silicon Valley Watcher's Tom Foremski provided some unintentional humor in discussing Anderson and Heinen in his post about the issue today:
Neither Anderson nor Heinen grabbed unreasonable wealth from the company. She sold $85 million in shares and he sold $76 million.
Which makes us wonder what does constitute unreasonable wealth, anyway?
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