Apple Inc's iconic chief executive Steve Jobs is being dragged toward the heart of a stock-options backdating scandal with potentially industry-changing implications, analysts said.
A former Apple executive who settled charges linked to stock-options fraud said on Tuesday he had warned Jobs about potential accounting problems related to the executive awards.
The claims about Jobs' knowledge of the scheme came as Apple's former top lawyer and former head financial officer were charged in a civil suit by US federal regulators with participating in fraud related to multimillion dollar Apple stock option awards.
"Everybody is pointing their fingers at Steve now," industry analyst Rob Enderle of Enderle Group said. "You have to figure the guy who is monetarily benefiting from the whole thing, especially if he is a micro-manager, had to be the one driving it."
Jobs, who is a notorious micro-manager, negotiated extensively regarding his stock package, Enderle said. Jobs is famous for taking a US$1 salary and letting his fortune ride on Apple's value.
Cupertino, California-based Apple declined to comment on claims that Jobs knew about the stock option awards in question and stressed that he was not named in the government suit filed on Tuesday.
"The Securities and Exchange Commission [SEC] did not file any action against Apple or any of its current employees," Apple spokesman Steve Dowling said.
Dowling also pointed out the regulatory watchdog said it would not be bringing charges against Apple because of its "swift, extensive and extraordinary" cooperation with the stock option backdating probe.
Jobs continues to have the support of Apple board members, including former US vice president Al Gore.
Unlike many other companies, Apple's fate is firmly entwined with that of its chief executive and any linking of Jobs to illegal backdating of stock options would rock the company, analysts said.
"A company normally wants to distance itself from a troubled executive but it is hard to do with Apple," Enderle said. "It may be that whatever happens to Steve happens to Apple."
The stock-option case has not hampered Apple's ability to produce and sell its mainstay iPod MP3 players and Macintosh computers.
That could change if Jobs has to shift his energy from being Apple's superstar pitchman to defending himself in litigation.
The recently introduced Apple TV set-top box to route video and films wirelessly from computers to televisions isn't selling well and studies show so many iPods have sold that the market is saturated.
Apple plans to launch two models of its innovative iPhone in June, but critics warn that the US$499 and US$599 price tags and the exclusive service deal with Cingular telecommunications company could hamper sales.
"Apple is betting an awful lot on the iPhone," Enderle said. "There may be some rocky roads ahead. The only thing to make it worse would be charges against Steve."
The civil suit filed by the SEC claims former Apple lawyer Nancy Heinen, 50, and former Apple chief financial officer Fred Anderson, 62, participated in a scheme to backdate two large stock option grants to top Apple management, including to the chief executive officer.
Anderson has agreed to a settlement with the SEC that includes a payment of US$3.5 million.
Anderson's lawyer said the executive "cautioned Mr Jobs that the Executive Team grant would have to be priced based on the date of the actual Board agreement or there could be an accounting charge," a statement said.
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