Comments on: Apple is giving Jobs a free pass, critics say http://jeffnolan.com/wp/2007/01/05/apple-is-giving-jobs-a-free-pass-critics-say/ Jeff Nolan's take on innovation, entrepreneurship, tech and stuff that interests me Thu, 17 May 2012 21:05:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jeff http://jeffnolan.com/wp/2007/01/05/apple-is-giving-jobs-a-free-pass-critics-say/comment-page-1/#comment-64447 Jeff Sat, 06 Jan 2007 19:53:27 +0000 http://jeffnolan.com/wp/2007/01/05/apple-is-giving-jobs-a-free-pass-critics-say/#comment-64447 Actually, one of the grants was to himself so he did personally benefit. I think one of the things that the government (SEC at this point, as far as I am aware, DoJ is not investigating) is the size the of the misrepresentation that will factor into it and at only $80m it is barely a rounding error in Apple's financials. Your analogy does hold up, for the government to make a criminal case there would have to be deliberate intent to defraud investors and that's a really difficult charge to make stick. Of the 100+ companies caught up in this there have only been 5 criminal cases brought and they were pretty egregious. The defense for this, and again I am not assigning my judgment to it but rather just stating what the insiders in all these cases are saying, is that when you go back to the 1990's when the majority of these charges apply the practice of backdating options was standard practice. Whether right or wrong it's what companies did for a long time and the SEC wasn't enforcing any actions so you could argue that while technically illegal it was accepted by regulatory agencies therefore not in practice illegal. We all like to think that the law is black and white - binary for us computer geeks - but it's not and never has been so this broader perspective is really important to have in order to assess guilt or blame. Actually, one of the grants was to himself so he did personally benefit. I think one of the things that the government (SEC at this point, as far as I am aware, DoJ is not investigating) is the size the of the misrepresentation that will factor into it and at only $80m it is barely a rounding error in Apple’s financials.

Your analogy does hold up, for the government to make a criminal case there would have to be deliberate intent to defraud investors and that’s a really difficult charge to make stick. Of the 100+ companies caught up in this there have only been 5 criminal cases brought and they were pretty egregious.

The defense for this, and again I am not assigning my judgment to it but rather just stating what the insiders in all these cases are saying, is that when you go back to the 1990′s when the majority of these charges apply the practice of backdating options was standard practice. Whether right or wrong it’s what companies did for a long time and the SEC wasn’t enforcing any actions so you could argue that while technically illegal it was accepted by regulatory agencies therefore not in practice illegal. We all like to think that the law is black and white – binary for us computer geeks – but it’s not and never has been so this broader perspective is really important to have in order to assess guilt or blame.

]]> By: Dennis Howlett http://jeffnolan.com/wp/2007/01/05/apple-is-giving-jobs-a-free-pass-critics-say/comment-page-1/#comment-64402 Dennis Howlett Sat, 06 Jan 2007 16:35:14 +0000 http://jeffnolan.com/wp/2007/01/05/apple-is-giving-jobs-a-free-pass-critics-say/#comment-64402 The company may give Jobs a free pass but I wonder whether the SEC will. The fact he didn't personally benefit has nothing to do with whether his actions are illegal. It's a bit like the difference between murder and manslaughter. The company may give Jobs a free pass but I wonder whether the SEC will. The fact he didn’t personally benefit has nothing to do with whether his actions are illegal. It’s a bit like the difference between murder and manslaughter.

]]> By: Jeff http://jeffnolan.com/wp/2007/01/05/apple-is-giving-jobs-a-free-pass-critics-say/comment-page-1/#comment-63689 Jeff Sat, 06 Jan 2007 00:15:23 +0000 http://jeffnolan.com/wp/2007/01/05/apple-is-giving-jobs-a-free-pass-critics-say/#comment-63689 I never suggested it was ok. I never suggested it was ok.

]]> By: Richard L. Brandt http://jeffnolan.com/wp/2007/01/05/apple-is-giving-jobs-a-free-pass-critics-say/comment-page-1/#comment-63670 Richard L. Brandt Fri, 05 Jan 2007 22:38:44 +0000 http://jeffnolan.com/wp/2007/01/05/apple-is-giving-jobs-a-free-pass-critics-say/#comment-63670 So it's OK to perform illegal acts as long as you're still good for the company and shareholders? Nonsense! If Jobs had not turned the company around, would it then be OK to prosecute him? That's not how the law works. Apple's Board has already confessed that Jobs knew about some of the backdating, and even recommended some of the dates. That means they are confessing that he is guilty of an illegal act. It's time top prosecute. So it’s OK to perform illegal acts as long as you’re still good for the company and shareholders? Nonsense! If Jobs had not turned the company around, would it then be OK to prosecute him?

That’s not how the law works. Apple’s Board has already confessed that Jobs knew about some of the backdating, and even recommended some of the dates. That means they are confessing that he is guilty of an illegal act.

It’s time top prosecute.

]]> By: Anshu Sharma http://jeffnolan.com/wp/2007/01/05/apple-is-giving-jobs-a-free-pass-critics-say/comment-page-1/#comment-63624 Anshu Sharma Fri, 05 Jan 2007 19:46:43 +0000 http://jeffnolan.com/wp/2007/01/05/apple-is-giving-jobs-a-free-pass-critics-say/#comment-63624 When a $200 device helps you sell a $75K car (Jaguars and BMW's), it is a miracle. And Steve Jobs gets the credit. So I am not surprised that many are willing to look away. I was in Australia recently and was surprised by how prevalent the iPod phenomenon is. Mere association with iPod and Mac's is being by used by retailers to make their products and stores look 'cool'. Another interesting facet is that the Apple computers are becoming the ultimate aspirational product for many teenagers, and when they start getting their first big check in a few years, Apple may have a second boom. And this Apple cult is no longer restricted to tech heads in Bay Area. When a $200 device helps you sell a $75K car (Jaguars and BMW’s), it is a miracle. And Steve Jobs gets the credit. So I am not surprised that many are willing to look away. I was in Australia recently and was surprised by how prevalent the iPod phenomenon is. Mere association with iPod and Mac’s is being by used by retailers to make their products and stores look ‘cool’. Another interesting facet is that the Apple computers are becoming the ultimate aspirational product for many teenagers, and when they start getting their first big check in a few years, Apple may have a second boom. And this Apple cult is no longer restricted to tech heads in Bay Area.

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