In an extraordinary statement, Fred Anderson, Apple’s ex-CFO points the finger at Steve Jobs in the backdating options scandal:
Fred cautioned Mr. Jobs that the Executive Team grant would have to be priced based on the date of the actual Board agreement or there could be an accounting charge. He further advised Mr. Jobs that the Board would have to confirm its prior approval in a legally satisfactory method. He was told by Mr. Jobs that the Board had given its prior approval and the Board would verify it. Fred relied on these statements by Mr. Jobs and from them concluded the grant was being properly handled.
I’ve read the entire statement several times in an effort to discern the real message. To me, Anderson was either a fool or spineless. I’ve worked for strong CEOs and know how hard it is to resist instructions, even when alarm bells are ringing. Even so, a firm ethical streak trumps dishonesty every time.
Everything I’ve read about Steve Jobs indicates a man who while brilliant is a control freak. I cannot believe that a man of Jobs intellectual talent did not know the implications of what transpired between them.. I said as much in Janaury.
At present, Jobs appears to be insulated against the fallout. How long that lasts depends in large measure on whether the SEC want to make examples, the extent of any public outcry and the SECs stomach for what would almost certainly be a tough legal battle.
My view is that if the SEC allows Jobs a free pass then its ability to provide an effective oversight role will be severely dented.
There’s plenty of chatter on the topic.
Anderson has agreed to pay a $3.5 million penalty in lieu of prosecution.
