Apple Finds Irregularities in Stock Option Grants

June 28th, 2006 at 3:00 PM - News by Brad Cook

Apple on Thursday announced that it has found irregularities in stock option grants issued between 1997 and 2001, including a grant to CEO Steve Jobs that was later canceled and resulted in no financial gain to him. The company said in a press release that it has hired independent counsel to investigate the matter further. It has also informed the SEC of the situation.

"Apple is a quality company, and we are proactively and transparently disclosing what we have discovered to the SEC," said Mr. Jobs said in the press release. "We are focused on resolving these issues as quickly as possible." The company added that it will not comment further on the situation until the investigation is concluded.

While Appleis stock jumped over 5% to US$58.97 during Thursday trading, on the strength of a broader Nasdaq rally, this news, which came after the close of the markets, led to a 2.87% drop to $57.28 in after-hours trading, as of 4:43 PM EST.

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