Other than Heinen, the only Apple employee to face the SEC was Apple chief financial officer Fred D.
Anderson, who immediately settled with the organization at a cost of .5 million in stock gains plus a 0,000 fine.
Additionally, companies can use backdating to produce greater executive incomes without having to report higher expenses to their shareholders, which can lower company earnings and/or cause the company to fall short of earnings predictions and public expectations.
Corporations, however, have defended the practice of stock option backdating with their legal right to issue options that are already in the money as they see fit, as well as the frequent occurrence in which a lengthy approval process is required.
The Michigan Law Review come at stock option scandals are increasingly prevalent.
Several investor groups, including the Council of Institutional Investors, the New York City Pension Funds, and the Connecticut Retirement Plans and Trust Funds.
An internal Apple investigation led by non-executive director Al Gore said Jobs was unaware of the accounting problems of backdating.
In that first set of grants, Heinen, Anderson, and four other executives benefited. Anderson immediately settled the charges without "admitting or denying the allegations," an approach the SEC allows when the agency perceives public interests are served by closing the affair instead of proving guilt or losing a case.
Anderson will give up nearly million in stock option gains and nearly 0,000 in interest and penalties.
Apple CEO Steve Jobs has received a subpoena from the US Securities and Exchange Commission.
But, according a report by Bloomberg, the subpoena is not part of a SEC investigation, rather a demand for Jobs deposition in a backdating lawsuit against Apples former top lawyer Nancy Heinen.