Back to you, Steve
7 January 2007Without going into a lot of detail, Apple posted a required SEC doc that essentially reaffirmed the company’s earlier position on options, although, in fact, in my humble opinion, it made things a whole lot worse for Steve Jobs.
One of my earliest blogs was on this subject, and Dave Winer was kind enough to point to it, which he did again after this last filing:
http://www.scripting.com/2006/12/27.html#When:9:49:08PM
While clearly biased Apple fans are hoping this filing will make the problem go away, I see it as having the opposite effect. In fact, it suggests, unlike earlier filings, that Jobs had a direct hand in selecting backdating operations. Earlier, the (totally unbelievable) explanation was that Jobs was involved, but didn’t clearly comprehend the accounting issues.
Now we have what seems to be a smoking gun: Steve is admitting that he was involved in backdating in specific options grants. There is no more talk about being dumb about accounting. And it appears that his hand is directly involved.
What is probably worse, and something I alluded to in my first post on this: the company is so afraid of losing Steve (unthinkable), that it will do Anything to avoid it. In this case, that means, a) create scapegoats, and b) remain in denial.
The scapegoats, which I suggested earlier would appear, now have been “outed”: general counsel and the CFO, Nancy Heinen and Fred Anderson. I suspect that they will have a complex defense.
Meanwhile, Steve is now in deeper than ever. He no longer is being portrayed as ignorant, he apparently had a direct hand in backdating, and – worst of all – the company apparently faked a board meeting to justify the process.
Uh oh.
Faking a board meeting is really, well, OFF THE CHARTS.
What the FUCK were they thinking? Is this not an appropriate time for such language?
I will say it again:
1. There is no Apple without Steve, and
2. I do not want to see Steve leave Apple.
But, my job is to call the future as I see it. And right now, this looks increasingly as though my original call, that Steve has culpability, is correct.
2 Responses to “Back to you, Steve”
January 9th, 2007 at 3:26 am
Mark,
Bold words. I like that you have tracked this story for months, then do not whimp out when you see the shiznit hitting the fan.
I am trying to quell the swearing for 2007, but thanks to you I feel alright to let it rip when ghosts come out of the attic. Otherwise, glad to see your blog up, get ‘er done!
All the best, Tim (AKA Tekno)
January 13th, 2007 at 3:06 am
Big stuff. Its amazing in a lot of ways because it seems like not only do Apple shareholders want to turn the other cheek on this (expected), but the general public as well (unexpected). People REALLY like this company…and their iPods. Any other CEO would be long gone by now.
It will be interesing to see how Jobs can sidestep this at all.
Paul
Public Company Hell
http://www.publiccompanyhell.com