The critics are coming out about how Apple handled the stock option backdating investigation involving Steve Jobs. Of course Jobs got off easy but this goes back to the post I made yesterday about how the CEO’s role in a public company has changed; one example of success in this new era is Steve Jobs because not only does he manage Wall St. deftly but he also has a cult-like following among customers and employees (who despite his many well publicized management style issues is someone who inspires confidence and loyalty).

It also helps that the person who led the investigation on behalf of the board is former vice president Al Gore, who largely has the perception on honesty and integrity.

In the end the critics are probably right that Jobs got off easy because he IS Apple Computer right now, and we’ll still buy their products and love them, Wall St. will still trade the stock up, and in a year this will largely be forgotten. Jobs is the benevolent dictator that we are willing to give a lot of latitude to because we get so much out of him in return.

The one wildcard that remains is the federal investigation but this whole backdating issue is really quite complicated and doesn’t capture the public’s imagination like “cooking the books” in previous corporate scandals.

MercuryNews.com | 01/05/2007 | Apple is giving Jobs a free pass, critics say:

“Apple’s board deserves an `F’ for how it has handled its backdating investigation,” said Lynn Turner, managing director of research at Glass Lewis, a firm that advises investors on corporate governance and accounting issues.

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