By Lisa Smith Updated Jan 8, 2018 In the apple options backdating scandal, an investigation by the Securities and Exchange Commission resulted in the resignations of more than 50 senior executives and CEO s scwndal firms across the spectrum from restaurant chains and recruiters to home builders and health care. What was it all about? Options backdating.
This was one of many options backdating scandals to occur within the last decade. To prevent similar fraudulent activity in the future, Apple should take measures to increase consequences for bad behavior or incentivize whistle-blowers. Options backdating consists of granting an option that is dated prior to the date the option is actually granted. It allows the grantee to receive options that are already in the money, which allows him or her to glean a much higher profit. Apple admitted to granting backdated options on 15 dates between 1997 and 2002 2.
Opinions expressed by Forbes Contributors are their own. Share to facebook Share to twitter Share to linkedin In one of the Steve Jobs obituaries there is this reference to the backdated options scandal at Apple.