Apple backdating stock updating ipod touch software for

Since at-the-money options require a firm's share price to appreciate in order for the executives to profit, they meet the criteria for performance based-compensation and therefore qualify as a tax deduction.

When senior executives realized that they could look backward for the date during which their firm's stock was at its lowest trading price and then pretend that was the date they were issued the stock grants, a scandal was born.

From a consumer's perspective, customers rely on companies to provide goods and services.

When those firms have no ethical boundaries, their wares become suspect.

By faking the issue date, they could guarantee themselves in-the-money options and instant profits.

They could also cheat the IRS twice, once for themselves, since capital gains are taxed at a lower rate than ordinary income, and once for their employers since the cost of the options would qualify as a corporate tax write-off.

Court documents reveal that a federal judge in San Jose has given preliminary approval to a million settlement of shareholder claims over backdating of stock options against several of Apple's current and former execs.

The SEC filed related charges in 2007 against former Apple Chief Financial Officer Fred Anderson and Nancy Heinen, the company’s former general counsel .The process became so prevalent that some investigators believe 10% of the stock grants made nationwide were issued under these false pretenses.A series of academic studies was responsible for bringing the backdating scandal to light.A series of two follow-up studies by professors elsewhere suggested that the uncanny ability to time options grants could only have happened if the granters knew the prices in advance.A Pulitzer Prize-winning story published in The Wall Street Journal finally blew the lid off of the scandal.(See also: .) As a result, firms restated earnings, fines were paid and executives lost their jobs—and their credibility.The SEC reported that investors suffered in excess of billion in losses due to share price declines and stolen compensation. has agreed to settle a securities class-action lawsuit related to alleged stock-option backdating for .5 million, the New York City Employees’ Retirement System said Wednesday.NYCERS initially filed suit as lead plaintiff against Apple roughly four years ago, alleging that the consumer-electronics maker improperly backdated stock options for employees between 20.The amendment labeled executive compensation in excess of

The SEC filed related charges in 2007 against former Apple Chief Financial Officer Fred Anderson and Nancy Heinen, the company’s former general counsel .

The process became so prevalent that some investigators believe 10% of the stock grants made nationwide were issued under these false pretenses.

A series of academic studies was responsible for bringing the backdating scandal to light.

A series of two follow-up studies by professors elsewhere suggested that the uncanny ability to time options grants could only have happened if the granters knew the prices in advance.

A Pulitzer Prize-winning story published in The Wall Street Journal finally blew the lid off of the scandal.

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The SEC filed related charges in 2007 against former Apple Chief Financial Officer Fred Anderson and Nancy Heinen, the company’s former general counsel .The process became so prevalent that some investigators believe 10% of the stock grants made nationwide were issued under these false pretenses.A series of academic studies was responsible for bringing the backdating scandal to light.A series of two follow-up studies by professors elsewhere suggested that the uncanny ability to time options grants could only have happened if the granters knew the prices in advance.A Pulitzer Prize-winning story published in The Wall Street Journal finally blew the lid off of the scandal.(See also: .) As a result, firms restated earnings, fines were paid and executives lost their jobs—and their credibility.The SEC reported that investors suffered in excess of $10 billion in losses due to share price declines and stolen compensation. has agreed to settle a securities class-action lawsuit related to alleged stock-option backdating for $16.5 million, the New York City Employees’ Retirement System said Wednesday.NYCERS initially filed suit as lead plaintiff against Apple roughly four years ago, alleging that the consumer-electronics maker improperly backdated stock options for employees between 20.The amendment labeled executive compensation in excess of $1 million as unreasonable and thus not eligible to be taken as a deduction on the firm's taxes.Performance-based compensation, on the other hand, was deductible.

million as unreasonable and thus not eligible to be taken as a deduction on the firm's taxes.Performance-based compensation, on the other hand, was deductible.

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