In the alternative, they move to dismiss this action on its merits.
In this Opinion, I grant individual defendants' motion to dismiss all claims arising before April 11, 2001.
It took until December that year until terms were finally agreed upon, at which point Apple’s stock price was .01.
Backdating was then carried out to give Jobs a lower share price which, on paper, made him million richer.
His answer: "[The best CEO] ." Born September 1, 1962, Greg "Gregory" Reyes began his career at Convergent Technologies and then became VP of sales and support at Banyan Systems.
In 1998, he was recruited as CEO of Brocade where he led the company to its IPO in 1999.
The scandal also challenged people’s perception of Apple as “the good guys” and Jobs’ as a CEO who wasn’t money-hungry.
(Over the next year, this perception that Apple was no longer a scrappy underdog fighting the establishment would again be challenged when Apple sought legal action against bloggers for reporting on the company’s trade secrets.) In the end, the SEC announced in April 2007 that it would not pursue a case against Apple — in part because the company had set up an internal investigation into the stock scandal so rapidly.
When these options “vest” after a period of time, the executive can sell them at the new share price.
Because of how widespread the behavior was, it never presented a realistic possibility that Jobs would lose his, err, job as part of the scandal.
However, it was certainly enough to cause a bit of concern at Apple, considering the crucial role Jobs had played in turning the company around since his return a decade earlier.
Such timing reduces the strike prices and inflates the value of stock options, thereby increasing management compensation.
This practice allegedly violates any stock option plan that requires strike prices to be no less than the fair market value on the date on which the option is granted by the board.