Apple finds irregularities in stock option grants

NEW YORK - An internal investigation at Apple Computer has found irregularities with its past stock option grants, prompting the resignation of a former chief financial officer from the board of directors, the company has said.

It also said Chief Executive Steve Jobs was aware of some of the stock option grants, but he did not benefit from those grants and was unaware of the accounting implications.

"I apologise to Apple's shareholders and employees for these problems, which happened on my watch," Jobs said. "They are completely out of character for Apple."

An Apple spokesman was not immediately available for further comment on the status of Jobs' role at the company.

The makers of the popular iPod digital media device and Macintosh computer said it will likely need to restate its past financial statements, but was unable to determine the details of the restatements or the size of the likely charges it plans to take.

Apple is among the most high profile of the companies wrapped up in stock options scandal that has ravaged the technology industry.

The US Securities and Exchange Commission has more than 80 investigations under way to determine whether companies had manipulated prices of stock options granted to its executives.

Apple's investigation, which it first disclosed in June 29, found "no misconduct" by current members of Apple's management team, the company said.

Two former officers were also connected to the actions in connection with the accounting, the company said. Apple did not identify them.

A three-month internal investigation turned up stock option grants made on 15 dates between 1997 and 2002 had grant dates that precede the approval of the grants.

The results of the investigation will now be reviewed by external auditors, Apple said.

Fred Anderson, the company former chief financial officer, resigned from its board of directors since those irregular stock options were granted during his tenure as CFO.

Apple shares fell 53 cents in after hours trade after closing the day up US$1.30, ($1.98) or 1.75 per cent, at US$75.38 on Nasdaq.

- REUTERS