Jobs apologizes for Apple's stock option practices, ex-CFO quits company's board

SAN JOSE, Calif. — Apple Computer Inc. CEO Steve Jobs apologized Wednesday for the company's past stock-option practices after an internal investigation found accounting irregularities between 1997 and 2002 and showed Jobs was aware of some options backdating.

The iPod and Macintosh maker said its three-month investigation also prompted the resignation of former Chief Financial Officer Fred Anderson from the company's board of directors.

The company said Jobs knew that some grants had been given favorable dates "in a few instances," but he did not benefit from them and was not aware of the accounting implications.

"I apologize to Apple's shareholders and employees for these problems, which happened on my watch," Jobs said in a statement . "We will now work to resolve the remaining issues as quickly as possible and to put the proper remedial measures in place to ensure that this never happens again."

Apple said it will likely have to restate some earnings as a result. The looming restatements threaten to wipe out some of the profit generated during the most prosperous stretch in Apple's 30-year history as millions of consumers snapped up the company's ubiquitous iPod. Apple has reported a total of $3.1 billion in profit over the past four years.

Shares of Apple shed 57 cents to $74.81 in aftermarket trading after closing up $1.30, or 1.8 percent, on the Nasdaq Stock Market on Wednesday.

Apple, one of the most prominent companies caught in the nationwide stock options mishandling scandal, said its investigation into the matter did not uncover any misconduct by any member of Apple's current management team, but that it did raise "serious concerns" regarding the actions of two former officers.

The company did not name the two officers but announced that Anderson, who served as the company's chief financial officer from 1996 until 2004, had resigned from the company board. Apple said it will provide all details of their actions to the Securities and Exchange Commission.

Apple spokesman Steve Dowling refused to elaborate beyond Wednesday's prepared statement.

The probe found irregularities in the recording of stock option grants made on 15 dates between 1997 and 2002, with the last one involving a January 2002 grant, the company said. The grants made had dates that preceded the approval of those grants.