Apple board gives Jobs thumbs up

Apple Computer chief executive Steve Jobs received a vote of confidence from the company's board yesterday in a much anticipated…

Apple Computer chief executive Steve Jobs received a vote of confidence from the company's board yesterday in a much anticipated filing that also said it would take an $84 million (€63.7 million)charge for misdating stock options.

Apple's filing with the US Securities and Exchange Commission detailed results of its internal investigation over options grants and came after several days of major swings in its share price.

Investors had been focused on whether the investigation would taint Mr Jobs, the driving force behind Apple's turnaround in recent years.

Apple shares rose about 5 per cent after the filing, which repeated earlier company statements that Mr Jobs and other managers recommended or were aware of certain inaccurate option dates, but did not financially benefit from those grants.

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Apple disclosed the amount of its restatement in the filing and admitted that thousands of stock option grants made between 1997 and 2002 used the wrong measurement date.

Apple said the originally assigned dates for 6,428 grants on 42 dates were improper. Among those were two questionable grants to Mr Jobs - dated January 12th, 2000, for 10 million shares, and October 19th, 2001, for 7.5 million shares.

The board originally approved the October 19th, 2001, grant at a meeting on August 29th, with an exercise price of $17.83. The final terms were set on December 18th and the price was changed to $18.30. But Apple shares were trading at $21.01 on that date.

"The approval for the grant was improperly recorded as occurring at a special board meeting on October 19th, 2001. Such a special board meeting did not occur," Apple said.

"There was no evidence, however, that any current member of management was aware of this irregularity."

Both of those grants to Mr Jobs were never exercised and were cancelled in March 2003, the company said.