The Securities and Exchange Commission reportedly has subpoenaed Apple CEO Steve Jobs to give a deposition in a lawsuit the agency has brought against Nancy Heinen, the company's former general counsel, in relation to the company's stock options backdating issues. The SEC announced in April it was suing Heinen.
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The issue Apple (Nasdaq: AAPL) thought it had put largely behind it may still be haunting the company, with a published report Thursday saying the Securities and Exchange Commission (SEC) has subpoenaed company CEO Steve Jobs as the agency continues to investigate stock options backdating issues.
Apple declined to comment on a Bloomberg News report suggesting that Jobs had been subpoenaed to give a deposition in a lawsuit the SEC has brought against Apple's former general counsel, Nancy Heinen. The SEC also declined to comment.
The SEC in April announced it was suing Heinen and former Apple CFO Fred Anderson in connection with a rash of misdated and backdated stock options grants at the computer and consumer device maker. Anderson promptly settled the charges against him, agreeing to forfeit US$3 million in stock sale profits, but admitting no wrongdoing.
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That has left Heinen to fight the charges against her. While the SEC has never said its investigation was closed, it's likely that Jobs is being asked to help build the SEC's case against the former corporate attorney, rather than seeking to take aim at Jobs himself.
For Apple, keeping Jobs away from the stock options scandal is essential not only because he is the face of the company as its founder and the savior CEO who embraced digital music and has transformed the company from a PC-also ran to a technology powerhouse, but also because an internal investigation essentially cleared him of any wrongdoing.
In the Clear
"Jobs is arguably the most protected CEO in the industry because Apple's board appears to believe that his departure would cost the company billions," Enderle Group Principal Analyst Rob Enderle told MacNewsWorld. "Apple hasn't been able to step away from this problem yet."
In April, a special investigative committee set up by Apple's board reported on the options issues and said Jobs had no direct involvement and did not benefit financially from any options dating shenanigans. Following that report, Apple's board of directors said it had "complete confidence" in Jobs.
However, Apple's board "has no more say" in how the case turns out now, Enderle noted. "It's up to the SEC and the Justice Department now."
There has always been a risk that Heinen would seek to strike a deal with the SEC and implicate Jobs in the process. In fact, when Anderson's attorney announced his settlement, he gave a statement that suggested Jobs was more involved than the internal investigation revealed.
Dozens of companies both inside and outside the technology sector have been caught up in the options backdating imbroglio since it began more than two years ago.
While there have been several high-profile CEO resignations as a result of backdating scandals, the stakes for executives were ratcheted up significantly last month when Brocade CEO Gregory L. Reyes was found guilty of fraud and conspiracy in connection with backdating, the first high-profile criminal conviction involving a tech company.
Job Seekers: Get Started With a Free Career Evaluation!We offer an affordable one-on-one custom program designed to provide you with the focus, tools, and techniques to define and achieve your career goals. Learn more.
The issue Apple (Nasdaq: AAPL) thought it had put largely behind it may still be haunting the company, with a published report Thursday saying the Securities and Exchange Commission (SEC) has subpoenaed company CEO Steve Jobs as the agency continues to investigate stock options backdating issues.
Apple declined to comment on a Bloomberg News report suggesting that Jobs had been subpoenaed to give a deposition in a lawsuit the SEC has brought against Apple's former general counsel, Nancy Heinen. The SEC also declined to comment.
The SEC in April announced it was suing Heinen and former Apple CFO Fred Anderson in connection with a rash of misdated and backdated stock options grants at the computer and consumer device maker. Anderson promptly settled the charges against him, agreeing to forfeit US$3 million in stock sale profits, but admitting no wrongdoing.
//-->
//-->
That has left Heinen to fight the charges against her. While the SEC has never said its investigation was closed, it's likely that Jobs is being asked to help build the SEC's case against the former corporate attorney, rather than seeking to take aim at Jobs himself.
For Apple, keeping Jobs away from the stock options scandal is essential not only because he is the face of the company as its founder and the savior CEO who embraced digital music and has transformed the company from a PC-also ran to a technology powerhouse, but also because an internal investigation essentially cleared him of any wrongdoing.
In the Clear
"Jobs is arguably the most protected CEO in the industry because Apple's board appears to believe that his departure would cost the company billions," Enderle Group Principal Analyst Rob Enderle told MacNewsWorld. "Apple hasn't been able to step away from this problem yet."
In April, a special investigative committee set up by Apple's board reported on the options issues and said Jobs had no direct involvement and did not benefit financially from any options dating shenanigans. Following that report, Apple's board of directors said it had "complete confidence" in Jobs.
However, Apple's board "has no more say" in how the case turns out now, Enderle noted. "It's up to the SEC and the Justice Department now."
There has always been a risk that Heinen would seek to strike a deal with the SEC and implicate Jobs in the process. In fact, when Anderson's attorney announced his settlement, he gave a statement that suggested Jobs was more involved than the internal investigation revealed.
Dozens of companies both inside and outside the technology sector have been caught up in the options backdating imbroglio since it began more than two years ago.
While there have been several high-profile CEO resignations as a result of backdating scandals, the stakes for executives were ratcheted up significantly last month when Brocade CEO Gregory L. Reyes was found guilty of fraud and conspiracy in connection with backdating, the first high-profile criminal conviction involving a tech company.
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