NEW YORK: Apple Computer Inc. revealed that an internal inquiry had uncovered irregularities in the grant of the company's stock options between 1997 and 2001.
Apple said in a statement an internal audit has revealed the irregularities and the company has informed the Securities and Exchange Commission about this. The committee has engaged an independent counsel to carry out an investigation.
It said one of the stock option grants during the period was made to chief executive officer Steve Jobs, but it was subsequently canceled, resulting in no financial gain for him.
Jobs said "Apple is a quality company, and we are proactively and transparently disclosing what we have discovered to the SEC. We are focused on resolving these issues as quickly as possible."
The revelations come as several leading companies, mostly in the technology sector, are under the scanner for alleged misuse of the stock options scheme in rewarding senior officers. Regulators are finding out whether these companies had back-dated the options granted to the executives to enhance the benefits. While SEC rules do not prohibit backdating if it is properly disclosed in regulatory filings, corporate governance experts have been criticizing the practice.
Illegal backdating is liable for penalties, including charges against earnings.
An Apple spokesperson refused to say when the investigation would over. He said it is being conducted in order to resolve the issue as quickly as possible.
