Steve jobs back dating options

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For more than a quarter century, the mantra, of course, has been that corporations’ primary focus should be on shareholders and the primary goal should be to “maximize shareholder value.” The famous Michael Jensen and William Meckling article in 1976 argued that the solution to the principal-agency problem — business leaders advance their own interests not those of shareowners — was to make the goal of the corporation the highest return to shareholders and to align shareholders and business leaders through stock options grants.

Although many business people and business school professors would still say that maximizing shareholder value should be the goal of the corporation, there have also been many critics over the years.

And sort of in this framework of options being, in part, a retention tool, is the idea to try to get a lower price so that there is the potential to maximize one’s profits on the options? Nevertheless, with one million shares each, every

For more than a quarter century, the mantra, of course, has been that corporations’ primary focus should be on shareholders and the primary goal should be to “maximize shareholder value.” The famous Michael Jensen and William Meckling article in 1976 argued that the solution to the principal-agency problem — business leaders advance their own interests not those of shareowners — was to make the goal of the corporation the highest return to shareholders and to align shareholders and business leaders through stock options grants.Although many business people and business school professors would still say that maximizing shareholder value should be the goal of the corporation, there have also been many critics over the years. And sort of in this framework of options being, in part, a retention tool, is the idea to try to get a lower price so that there is the potential to maximize one’s profits on the options? Nevertheless, with one million shares each, every $1 increase translated into a $1 million gain and a million dollars is still a million dollars. the key thing is if the stock goes up, which we always hope it does, then the golden handcuffs are dramatically increased, which is what I was hoping would happen. Could you just tell me a little bit about the process of how this all came to be? Today, Rubinstein is competing against Apple in his role as the executive chairman of Palm, which is backed by Q. I have to tell you, for these options to be worth anything, the stock has to go up so much compared to a dollar or two at the beginning . So for them to realize that kind of a gain here, it’s a lot more than a small variation in a strike price. It wasn’t so much about the money, because a very small percentage of my net worth is from Apple. And I felt that the board wasn’t really doing the same with me. On March 18, 2008, Steve Jobs was deposed by the SEC during its investigation of Apple’s stock option backdating scandal. And when you say you failed, is it that you didn’t find anyone that you thought would be suitable to take on the role? The deposition was never made public until Forbes published it on Friday, after obtaining it through a Freedom of Information Act request. Jobs helped them get hired by Apple after the sale of Ne XT in the first place, and then rewarded them down the line with options on one million shares apiece. And so if these guys were going to realize the kind of money they could make elsewhere by staying at Apple, you know, they were going to have to make tens of millions of dollars. Several of them, you know, could be CEOs of a few big companies and a few medium-size companies. And as we’ve seen in the discussions of the past hour, I spent a lot of time trying to take care of people at Apple and to, you know, surprise and delight them with what a career at Apple could be – – could mean to them and their families. They weren’t underwater necessarily because of our performance, but, you know, the bubble had burst in the dot-coms, and here I had been working, you know, I don’t know, four years, five years of my life and not seeing my family very much and stuff, and I just felt like there is nobody looking out for me here, you know. Two of those ultra key people, Rubinstein and Tevanian, came from Ne XT. But everybody likes to be recognized by their peers, and the closest that I’ve got, or any CEO has, is their Board of Directors. So I was hurt, I suppose would be the most accurate word, and, you know, the board had given me some options, but they were all underwater.

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For more than a quarter century, the mantra, of course, has been that corporations’ primary focus should be on shareholders and the primary goal should be to “maximize shareholder value.” The famous Michael Jensen and William Meckling article in 1976 argued that the solution to the principal-agency problem — business leaders advance their own interests not those of shareowners — was to make the goal of the corporation the highest return to shareholders and to align shareholders and business leaders through stock options grants.

Although many business people and business school professors would still say that maximizing shareholder value should be the goal of the corporation, there have also been many critics over the years.

And sort of in this framework of options being, in part, a retention tool, is the idea to try to get a lower price so that there is the potential to maximize one’s profits on the options? Nevertheless, with one million shares each, every $1 increase translated into a $1 million gain and a million dollars is still a million dollars. the key thing is if the stock goes up, which we always hope it does, then the golden handcuffs are dramatically increased, which is what I was hoping would happen. Could you just tell me a little bit about the process of how this all came to be?

Today, Rubinstein is competing against Apple in his role as the executive chairman of Palm, which is backed by Q. I have to tell you, for these options to be worth anything, the stock has to go up so much compared to a dollar or two at the beginning . So for them to realize that kind of a gain here, it’s a lot more than a small variation in a strike price. It wasn’t so much about the money, because a very small percentage of my net worth is from Apple. And I felt that the board wasn’t really doing the same with me.

On March 18, 2008, Steve Jobs was deposed by the SEC during its investigation of Apple’s stock option backdating scandal. And when you say you failed, is it that you didn’t find anyone that you thought would be suitable to take on the role?

The deposition was never made public until Forbes published it on Friday, after obtaining it through a Freedom of Information Act request.

Jobs helped them get hired by Apple after the sale of Ne XT in the first place, and then rewarded them down the line with options on one million shares apiece. And so if these guys were going to realize the kind of money they could make elsewhere by staying at Apple, you know, they were going to have to make tens of millions of dollars. Several of them, you know, could be CEOs of a few big companies and a few medium-size companies. And as we’ve seen in the discussions of the past hour, I spent a lot of time trying to take care of people at Apple and to, you know, surprise and delight them with what a career at Apple could be – – could mean to them and their families. They weren’t underwater necessarily because of our performance, but, you know, the bubble had burst in the dot-coms, and here I had been working, you know, I don’t know, four years, five years of my life and not seeing my family very much and stuff, and I just felt like there is nobody looking out for me here, you know.

increase translated into a

For more than a quarter century, the mantra, of course, has been that corporations’ primary focus should be on shareholders and the primary goal should be to “maximize shareholder value.” The famous Michael Jensen and William Meckling article in 1976 argued that the solution to the principal-agency problem — business leaders advance their own interests not those of shareowners — was to make the goal of the corporation the highest return to shareholders and to align shareholders and business leaders through stock options grants.Although many business people and business school professors would still say that maximizing shareholder value should be the goal of the corporation, there have also been many critics over the years. And sort of in this framework of options being, in part, a retention tool, is the idea to try to get a lower price so that there is the potential to maximize one’s profits on the options? Nevertheless, with one million shares each, every $1 increase translated into a $1 million gain and a million dollars is still a million dollars. the key thing is if the stock goes up, which we always hope it does, then the golden handcuffs are dramatically increased, which is what I was hoping would happen. Could you just tell me a little bit about the process of how this all came to be? Today, Rubinstein is competing against Apple in his role as the executive chairman of Palm, which is backed by Q. I have to tell you, for these options to be worth anything, the stock has to go up so much compared to a dollar or two at the beginning . So for them to realize that kind of a gain here, it’s a lot more than a small variation in a strike price. It wasn’t so much about the money, because a very small percentage of my net worth is from Apple. And I felt that the board wasn’t really doing the same with me. On March 18, 2008, Steve Jobs was deposed by the SEC during its investigation of Apple’s stock option backdating scandal. And when you say you failed, is it that you didn’t find anyone that you thought would be suitable to take on the role? The deposition was never made public until Forbes published it on Friday, after obtaining it through a Freedom of Information Act request. Jobs helped them get hired by Apple after the sale of Ne XT in the first place, and then rewarded them down the line with options on one million shares apiece. And so if these guys were going to realize the kind of money they could make elsewhere by staying at Apple, you know, they were going to have to make tens of millions of dollars. Several of them, you know, could be CEOs of a few big companies and a few medium-size companies. And as we’ve seen in the discussions of the past hour, I spent a lot of time trying to take care of people at Apple and to, you know, surprise and delight them with what a career at Apple could be – – could mean to them and their families. They weren’t underwater necessarily because of our performance, but, you know, the bubble had burst in the dot-coms, and here I had been working, you know, I don’t know, four years, five years of my life and not seeing my family very much and stuff, and I just felt like there is nobody looking out for me here, you know. Two of those ultra key people, Rubinstein and Tevanian, came from Ne XT. But everybody likes to be recognized by their peers, and the closest that I’ve got, or any CEO has, is their Board of Directors. So I was hurt, I suppose would be the most accurate word, and, you know, the board had given me some options, but they were all underwater.

||

For more than a quarter century, the mantra, of course, has been that corporations’ primary focus should be on shareholders and the primary goal should be to “maximize shareholder value.” The famous Michael Jensen and William Meckling article in 1976 argued that the solution to the principal-agency problem — business leaders advance their own interests not those of shareowners — was to make the goal of the corporation the highest return to shareholders and to align shareholders and business leaders through stock options grants.

Although many business people and business school professors would still say that maximizing shareholder value should be the goal of the corporation, there have also been many critics over the years.

And sort of in this framework of options being, in part, a retention tool, is the idea to try to get a lower price so that there is the potential to maximize one’s profits on the options? Nevertheless, with one million shares each, every $1 increase translated into a $1 million gain and a million dollars is still a million dollars. the key thing is if the stock goes up, which we always hope it does, then the golden handcuffs are dramatically increased, which is what I was hoping would happen. Could you just tell me a little bit about the process of how this all came to be?

Today, Rubinstein is competing against Apple in his role as the executive chairman of Palm, which is backed by Q. I have to tell you, for these options to be worth anything, the stock has to go up so much compared to a dollar or two at the beginning . So for them to realize that kind of a gain here, it’s a lot more than a small variation in a strike price. It wasn’t so much about the money, because a very small percentage of my net worth is from Apple. And I felt that the board wasn’t really doing the same with me.

On March 18, 2008, Steve Jobs was deposed by the SEC during its investigation of Apple’s stock option backdating scandal. And when you say you failed, is it that you didn’t find anyone that you thought would be suitable to take on the role?

The deposition was never made public until Forbes published it on Friday, after obtaining it through a Freedom of Information Act request.

Jobs helped them get hired by Apple after the sale of Ne XT in the first place, and then rewarded them down the line with options on one million shares apiece. And so if these guys were going to realize the kind of money they could make elsewhere by staying at Apple, you know, they were going to have to make tens of millions of dollars. Several of them, you know, could be CEOs of a few big companies and a few medium-size companies. And as we’ve seen in the discussions of the past hour, I spent a lot of time trying to take care of people at Apple and to, you know, surprise and delight them with what a career at Apple could be – – could mean to them and their families. They weren’t underwater necessarily because of our performance, but, you know, the bubble had burst in the dot-coms, and here I had been working, you know, I don’t know, four years, five years of my life and not seeing my family very much and stuff, and I just felt like there is nobody looking out for me here, you know.

million gain and a million dollars is still a million dollars. the key thing is if the stock goes up, which we always hope it does, then the golden handcuffs are dramatically increased, which is what I was hoping would happen. Could you just tell me a little bit about the process of how this all came to be?

Today, Rubinstein is competing against Apple in his role as the executive chairman of Palm, which is backed by Q. I have to tell you, for these options to be worth anything, the stock has to go up so much compared to a dollar or two at the beginning . So for them to realize that kind of a gain here, it’s a lot more than a small variation in a strike price. It wasn’t so much about the money, because a very small percentage of my net worth is from Apple. And I felt that the board wasn’t really doing the same with me.

On March 18, 2008, Steve Jobs was deposed by the SEC during its investigation of Apple’s stock option backdating scandal. And when you say you failed, is it that you didn’t find anyone that you thought would be suitable to take on the role?

The deposition was never made public until Forbes published it on Friday, after obtaining it through a Freedom of Information Act request.

Jobs helped them get hired by Apple after the sale of Ne XT in the first place, and then rewarded them down the line with options on one million shares apiece. And so if these guys were going to realize the kind of money they could make elsewhere by staying at Apple, you know, they were going to have to make tens of millions of dollars. Several of them, you know, could be CEOs of a few big companies and a few medium-size companies. And as we’ve seen in the discussions of the past hour, I spent a lot of time trying to take care of people at Apple and to, you know, surprise and delight them with what a career at Apple could be – – could mean to them and their families. They weren’t underwater necessarily because of our performance, but, you know, the bubble had burst in the dot-coms, and here I had been working, you know, I don’t know, four years, five years of my life and not seeing my family very much and stuff, and I just felt like there is nobody looking out for me here, you know.

I kept the interim CEO title for quite some time, a number of years. Apple was in a precarious situation in that we’d, you know, had the internet bubble busting, and I thought that Apple’s executive team and the stability of Apple’s executive team was one of its core strengths. What comes through in the deposition is how Jobs sees himself and his’ fierce loyalty to those who work for him. So I felt if I took the job, the Pixar shareholders and employees would think I was abandoning them. For instance, after selling Ne Xt to Apple in 1997, his initial reason for acting as a consultant was to get “some of the Ne Xt people into some jobs where they could help Apple.” He himself was reluctant at first to take on the CEO role at Apple because he didn’t want the people at his other company, Pixar, to “think I was abandoning them.” Then when it came time to reward his “ultra key” executives with one million options each, two of them were from Ne XT. Q: Okay, Did the board in fact fire [Gil Amelio] the following week? I’ve excerpted some of the juicier bits from the deposition below. On coming back to Apple and becoming CEO in 1997: Q: And I guess, just to go back in time then, I want to just try to understand a little bit the transition from having the title consultant to becoming CEO. A: Well, when Apple bought Ne XT, Apple was pretty messed up. Some names were redacted in the original, but I’ve reinserted them in brackets where it is obvious who Jobs is talking about I’ve also bolded some parts for emphasis. Apple existed to “delight customers” first — benefits to other stakeholders, including shareholders, followed.

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