Options Grants at Apple

Today’s Financial Times headlines:

Apple ‘falsified’ files on Jobs’ options
By Richard Waters in San Francisco
Published: December 28 2006 00:21 Last updated: December 28 2006 15:08
“Steve Jobs, chief executive of Apple Computer, was handed 7.5m stock options in 2001 without the required authorisation from the company’s board of directors, according to people familiar with the matter. Records that purported to show a full board meeting had taken place to approve Mr Jobs’ remuneration, as required by Apple’s procedures, were later falsified. These are now among the pieces of evidence being weighed by the Securities and Exchange Commission as it decides whether to pursue a case against the company or any individuals over the affair, according to these people. ”

The Apple Computer corporate site has financial information all the way back to 1994. That’s pretty impressive. They have a fiscal year end of September 30th and typically file their 10-K financial statements with the SEC at the beginning of December. Ernst and Young was their auditor for their initial public offering in 1994 until 1996. KPMG took over for fiscal year 1997 and has been their auditor ever since.

Apple Computer filed a DEF 14A on Mar. 21. 2002 with this note on the stock option grant table:
4. Subsequent to fiscal year 2001, in October 2001 the Board granted Mr. Jobs options to purchase 7,500,000 shares of Common Stock under the 1998 Plan at an exercise price per share of $18.30, which equaled the fair market value based on the closing market value of Common Stock on the date of grant. 25% of the options were vested as of the date of grant and the remainder vest in three equal annual installments commencing on the first anniversary of the date of grant. The options expire in October 2011.

APPLE COMPUTER INC filed this 10-K on Dec. 19. 2002

Page 93
The following table provides information about option grants to the Named Executive Officers during fiscal year 2002.
OPTION GRANTS IN LAST FISCAL YEAR
Individual Grants
Name: Steven P. Jobs
Number of Securities Underlying Options Granted (#) 7,500,000
Percent of Total Options Granted to Employees in Fiscal Year(1) 32.27 %
Exercise or Base Price($/Sh)(2) 18.30
Expiration Date 10/19/2011
Potential Realizable Value at Assumed Annual Rates of Stock Price Appreciation for Option Term(3) at 5% ($) 86,315,788
Potential Realizable Value at Assumed Annual Rates of Stock Price Appreciation for Option Term(3) at 10% ($) 218,741,153

APPLE COMPUTER INC filed this 10-K405 on Dec. 21. 2001

Page 74
Option Grants in Last Fiscal Year
The following table provides information about option grants to the Named Executive Officers during fiscal year 2001.
OPTION GRANTS IN LAST FISCAL YEAR
Individual Grants
Name: Steven P. Jobs
Number of Securities Underlying Options Granted (#) 0
Percent of Total Options Granted to Employees in Fiscal Year(1) 0%
Exercise or Base Price($/Sh)(2)
Expiration Date
Potential Realizable Value at Assumed Annual Rates of Stock Price Appreciation for Option Term(3) at 5% ($) ) 0
Potential Realizable Value at Assumed Annual Rates of Stock Price Appreciation for Option Term(3) at 10% ($) 0