Well-Timed Stock Options Causes Suspicion Over Pixar and Disney Deal
Steve Jobs of Apple may be in hot water as the investigation to whether the timing of the option grant was improperly backdated. While Jobs was at Pixar, he negotiated an employment contract with John Lasseter of Disney which included a large stock-options grant of 1 million shares.
The agreement was signed on March 21, 2001. However, the stock-option grant that was given was for the December 5, 2000 price, which was more than three months before the signing of the contract. According to the SEC rule at the time, options grant must be reported no later than 45 days after the end of Pixar’s fiscal-year.
On December 5, 2000 the stock price was at its lowest for that year. Before the signing of the contract, Pixar’s shares increased up to 24% making it a great profit for Lasseter.
Sources:
Stecklow, S (2007). Pixar pay package to Lasseter included well-timed options: Pact Jobs helped arrange had grant date 3 months before deal was signed. The Wall Street Journal, CCXLIX (3), A3.
Allison, K. (2007, February 10). Jobs' Pixar pay package 'well timed'. Retrieved February 13, 2007 from MSNBC, MSN, The Financial Times Ltd Web site: http://www.msnbc.msn.com/id/17076027/