Apple Discovers Stock Option Irregularities

Staff Reporter -- Electronic News, 6/30/2006

Add consumer electronics giant Apple to the list of companies tainted with stock options-related trouble.

On Thursday, the company said that an internal investigation found irregularities related to the issuance of certain stock option grants made between 1997 and 2001.

One of the grants in question was to CEO Steve Jobs, but, Apple asserted in its statement, "it was subsequently cancelled and resulted in no financial gain to the CEO."

The Cupertino, Calif.-based company said it has hired an independent counsel to perform an investigation, and that it has informed the SEC of the discovery. Apple said its executives will not comment further on the matter until the independent investigation is concluded.

"Apple is a quality company, and we are proactively and transparently disclosing what we have discovered to the SEC," Apple CEO Steve Jobs added in the statement. "We are focused on resolving these issues as quickly as possible."