Former Apple CFO Anderson settled with SEC on Stock Options Backdating Case for $3.65 Million

Fred Anderson, Apple's former CFO who resigned from Apple's Board when the stock options backdating issue broke, has reportedly settled with the Securities and Exchange Commission for a fine of $150,000 and repayment of $3.5 million in gains from his backdated stock options grant. Anderson admitted no wrongdoing.

The other former Apple executive in the SEC's sights is Nancy Heinen, former Apple General Counsel. She is accused of participating in backdating her own stock options and signing off on the minutes of a bogus meeting giving Apple CEO Steve Jobs backdated stock options later cancelled. Ms. Heinen plans to contest the charges rather than settling according to the same Reuters report.

This is an interesting case since backdating stock options is in itself not illegal and is apparently a very common practice in corporate compensation. However, there are SEC rules about how such compensation is accounted for in financial filings and in reports to stock holders that are at the heart of the issue. [Bill Fox]