Apple: Stock options possibly mishandled

[deadparrot]

SAN FRANCISCO - Apple Computer Inc. on Thursday joined the crowd of Silicon Valley companies to acknowledge some stock options awarded to employees might have been mishandled — a problem that threatens to raise questions about the accuracy of past financial statements.

Without providing details, the Cupertino, Calif.-based maker of personal computers and the iPod music player said its own internal investigation had uncovered "irregularities" in employee stock options issued between 1997 and 2001.

The troublesome stock options included a batch that went to Apple co-founder Steve Jobs, but the chief executive canceled those awards in March 2003 before he cashed them in to realize a gain. Jobs surrendered all of his outstanding options in exchange for 5 million shares of Apple stock now worth $295 million.

Apple said it has hired an outside lawyer to spearhead an investigation into its past stock options and has notified the Securities and Exchange Commission of the problem.

http://news.yahoo.com/s/ap/20060630/ap_on_bi_ge/apple_stock_options