Jobs Reportedly Gained From Converted Stock Sales

WASHINGTON — Financial filings show that Apple CEO Steve Jobs' stock options were exchanged at a profit for restricted Apple stock, according to a report in Thursday's (Jan. 11) edition of the Washington Post.

The Post reported that Apple's Securities and Exchange Commission filings reveal that questionable stock options granted to Jobs and given up by him in 2003 were exchanged for 5 million shares of restricted Apple stock. The report said the restricted stock was worth $75 million at the time.

In defending Jobs and its stock option policy, Apple has maintained that its CEO never personally benefited from stock option grants. The Post cited comments from an Apple spokesman who said the 2003 transaction under scrutiny did not directly benefit Jobs because, according to the report, "he could not sell the restricted shares until he had remained at Apple for another three years."

Jobs reportedly sold nearly half of the 5 million shares last March, the earliest date he could sell them, for $295.7 million, the paper reported.

The report also quoted investor advocates who maintained that Jobs did indeed benefit from the transactions because, as one advocate told the Post, "the [stock option] grant was converted on a value-to-value basis."

Apple restated its quarterly and fiscal earnings on Dec. 29. It also acknowledged in the filings that it faked documentation indicating that a grant of 7.5 million share options to Jobs was recorded at a special board meeting in October 2001. Apple said no such meeting was held. It also said there was no evidence that any current member of management was aware of the irregularity.

Apple is among a long list of Silicon Valley companies caught up in the scandal over the backdating of stock options. Jobs is one of the highest-profile executives implicated in the probe.