If you cover it up and fail to report that expense, the way Apple's folks allegedly did, well, that amounts to accounting fraud.While a few of those 38 terminations may turn out to be the result of such activity, it's likely that the vast majority fell on their swords to avoid sullying the good names of their companies.You see, if you backdate stock options to a date when the price of the stock was lower, then the options are "in-the-money" when granted.
In 2001 he was granted stock options amounting to 7.5 million Apple shares, allegedly without the required authorisation from the company's board of directors.
And, he did not directly benefit from the backdated options because they were canceled and exchanged for restricted shares.
Worst case, it happened on Jobs' watch, but he was far enough removed from the action to claim plausible deniability. Broadcom and others fingered the CEO, but that just shows how subjective this issue is.
But how does that relate to hiring prostitutes and drugging customers without their knowledge?
Said another way, do the feds really need to dig that deep to find enough rope to hang executives with?
Furthermore, the option came with an exercise price of .30.