Backdating scandal

The public perceived Apple as the “good” underdog in tech, as opposed to other presumably “bad” companies.During his March 18, 2008, deposition, taken at Apple’s Cupertino HQ, Jobs said, “It wasn’t so much about the money.” Instead, he said it was more about being “recognized by his peers.” He said he “felt like there is nobody looking out for me, you know.” But it didn’t necessarily appear that way to onlookers.In the mid-2000s, an investigation by the Securities and Exchange Commission resulted in the resignations of more than 50 senior executives and CEOs at firms across the spectrum from restaurant chains and recruiters to home builders and health care.High-profile companies including Apple, United Health Group, Broadcom, Staples, Cheesecake Factory, KB Homes, Monster.com, Brocade Communications Systems, Inc., Vitesse Semiconductor and dozens of lesser-known technology firms were implicated in the scandal. .) The essence of the options backdating scandal can be summarized simply as executives falsifying documents in order to earn more money by deceiving regulators, shareholders and the Internal Revenue Service (IRS).The amendment labeled executive compensation in excess of

The public perceived Apple as the “good” underdog in tech, as opposed to other presumably “bad” companies.During his March 18, 2008, deposition, taken at Apple’s Cupertino HQ, Jobs said, “It wasn’t so much about the money.” Instead, he said it was more about being “recognized by his peers.” He said he “felt like there is nobody looking out for me, you know.” But it didn’t necessarily appear that way to onlookers.In the mid-2000s, an investigation by the Securities and Exchange Commission resulted in the resignations of more than 50 senior executives and CEOs at firms across the spectrum from restaurant chains and recruiters to home builders and health care.High-profile companies including Apple, United Health Group, Broadcom, Staples, Cheesecake Factory, KB Homes, Monster.com, Brocade Communications Systems, Inc., Vitesse Semiconductor and dozens of lesser-known technology firms were implicated in the scandal. .) The essence of the options backdating scandal can be summarized simply as executives falsifying documents in order to earn more money by deceiving regulators, shareholders and the Internal Revenue Service (IRS).The amendment labeled executive compensation in excess of $1 million as unreasonable and thus not eligible to be taken as a deduction on the firm's taxes.Performance-based compensation, on the other hand, was deductible.

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The public perceived Apple as the “good” underdog in tech, as opposed to other presumably “bad” companies.

million as unreasonable and thus not eligible to be taken as a deduction on the firm's taxes.Performance-based compensation, on the other hand, was deductible.

Today’s “Today in Apple history” is significant, though, because it was one of the big scandals that rocked Apple during its big climb back to the top in the mid-2000s.

Backdating is legal so long as the company discloses the practice correctly.

Improper handling of backdating — which means missing information for investors — breaks the law.

Today, we’re used to the fact that Apple can be both a shrewd business titan and a “force for good” in the world.

The Apple stock backdating scandal was one of the first times these two seemingly opposite poles — Apple’s countercultural ethos and the realities of big business — seemed to collide.

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