Apple has built a visible brand that is recognizable and certainly newsworthy. The increased scrutiny can be good. In some cases it can seem frustrating for the Apple investor. Recently stories have broken about the backdated stock options scandal Apple is going through.Only it isn't just Apple that is being investigated. It's 80+ companies being investigated by the SEC. Some of these companies include Barnes & Noble, Home Depot, and Intuit, and those are the ones who've publicly admitted to it. Recent stories indicate the numbers will only grow, as using options as a way of paying or enticing employees grew to epic proportions in the late 90s.
Apple has so far opened up an investigation into this issue in late June and began letting out details in press releases, a stark contrast to some of the other companies that have still yet to reveal that they are being investigated.
Will other companies begin sending out press releases and holding internal investigations, taking the cue from Apple? Who knows. But it may be worth considering that Apple's commitment to public communication (which then causes more stories to focus on Apple and stock options) on this issue is actually a cause for the investor to remain confident in a company that values its squeaky clean image enough to act right away on issues like this.
But what about Steve Jobs and his famous $1 salary? Doesn't that make him the largest options holder at Apple? Actually, Steve takes restricted shares which work slightly differently, despite what some reporters have insinuated. As Apple's internal investigation moves on it has widened scope and sent notice to investors that 2002 and 2003's earnings will have to be restated. Some investors are indeed ticked off and disillusioned, enough to sue, but by putting it all out into the public Apple is doing the right thing.
There is also a strong chance that the negative effect on the stock as a result of the backdating scandal will probably be nullified in the short term by whatever happens today at WWDC, where a number of products are traditionally announced.
Tobias Buckell is a freelance blogger, futurist, and author who grew up in the Caribbean. He owns shares in Apple Computer.
Will other companies begin sending out press releases and holding internal investigations, taking the cue from Apple? Who knows. But it may be worth considering that Apple's commitment to public communication (which then causes more stories to focus on Apple and stock options) on this issue is actually a cause for the investor to remain confident in a company that values its squeaky clean image enough to act right away on issues like this.
But what about Steve Jobs and his famous $1 salary? Doesn't that make him the largest options holder at Apple? Actually, Steve takes restricted shares which work slightly differently, despite what some reporters have insinuated. As Apple's internal investigation moves on it has widened scope and sent notice to investors that 2002 and 2003's earnings will have to be restated. Some investors are indeed ticked off and disillusioned, enough to sue, but by putting it all out into the public Apple is doing the right thing.
There is also a strong chance that the negative effect on the stock as a result of the backdating scandal will probably be nullified in the short term by whatever happens today at WWDC, where a number of products are traditionally announced.
Tobias Buckell is a freelance blogger, futurist, and author who grew up in the Caribbean. He owns shares in Apple Computer.
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