After accounting for forfeitures, Apple was forced to recognize stock-based compensation expense of 5 million on a pretax basis that it hadn't done so previously.
Apple has essentially blamed former chief financial officer Fred Anderson and former general counsel and board secretary Nancy Heinen, both of whom are no longer with the company.
Moreover, even if VCs shared my risk function, because VCs hold a diversified portfolio of investments, the same options would be worth more to them than they are to me because they can diversify away downside risk much more effectively than I can.
If these startups are making a true claim about the value of their options, there should be a trade here that makes all parties better off.
The company also provides Ethernet media access controllers that offer addressing and channel control mechanisms and are used in enterprise class modular Ethernet switch platforms, as well as in Ethernet-over-SONET/SDH and Ethernet-over-OTN systems used in access, metro, and long-haul carrier networking systems; Ethernet transceivers, including single, quad, and octal devices that allow the transmission of 10/100/1000 BASE-T data over category 5 copper cable and fiber optic cabling for use in personal computers, home electronics, and LAN applications; and Ethernet transceivers with packet timing and synchronization capabilities.In addition, it provides a line of connectivity products, which comprise mixed-signal physical media devices, physical layer devices, crosspoint switches, and signal integrity devices that are used for the connection of systems via optical fiber, copper cable, or backplanes.Further, Vitesse offers a range of transport processing products, such as framers, mappers, and switches, which support data rates up to 10 Gbit/s for SONET/SDH, Eo S, and OTN applications.The academics concluded that something funny was going on.The companies were awarding the options later but then marking the awards to earlier dates, when the stock's price was low.The total compensation to executives granted back-dated options was either unchanged or, perhaps, lower than it would have been, since people tend to irrationally over-value a bird in hand (in the money options) to a dozen in the bush (out of the money options).