Posted on 10/27/2009 11:27:46 AM PDT by antiRepublicrat
After King County Superior Court Judge Gregory Canova awarded Microsoft an $8.7 million judgment in a 2008 lawsuit involving unpaid software licenses, he might have been surprised to learn that Microsoft isn’t actually in the software licensing business in Washington – or at least that’s what it reports to the state Department of Revenue.
For tax purposes, Microsoft reports that it’s earned its estimated $143 billion in software licensing revenue in Nevada, where there is no licensing tax. However, for legal purposes, Microsoft executes its licensing contracts so they are governed by and rely on the protections of Washington law and its courts (some regional contracts are governed by the laws in Ireland or China).
When necessary, as in the case Microsoft Licensing GP v. TSR Silicon Resources, which lasted two years, Microsoft uses the resources of Washington courts to enforce its licensing contracts. It does this while simultaneously dodging the taxes it would normally pay for engaging in the software licensing business in Washington - the same taxes that fund the courts.
(Excerpt) Read more at blog.reifman.org ...
You don't “settle” with the SEC if you have done no wrong.
What is there to settle if you are innocent?
Plus, even as we speak, the SEC is still pressing charges against TWO former Apple execs relating to the illegal stock options backdating Apple scam. Funny way to "drop all charges" isn't it?
I'd LOVE to see evidence for that. Come on, show it. Back up your claim. Why would Jobs settle when the SEC cleared him of any wrongdoing?
Microsoft didn't do options backdating.
During 1990s, Microsoft Practiced Variation of Options Backdating -- Wall Street Journal, 2006.
They had essentially the same practice as Apple, except their backdating window was even wider.
They merely stopped offering any stock options altogether
Microsoft Annual Report 2009: "At June 30, 2009, an aggregate of 714 million shares were authorized for future grant under our stock plans, which cover stock options, stock awards, and shared performance stock awards."
Whoops!
What more ya got?
I got a lot if you keep throwing these demonstrably false claims at me. You're not doing well. You should probably quit.
Backdating stock options at Apple was perfectly legal and a common part of their compensation package”
How about this: You can type slow, you can type fast, you can type in big black letters, or in type Apple gay pink, it won't make one iota of difference to the fact that stock option backdating IS illegal
Nor would it make make one iota of difference to the fact that the SEC launched a MAJOR investigation into Apple for ILLEGAL stock options backdating.
Nor would it change the fact that Apple CFO was forced to settle with the SEC on charges relating to illegal stock options backdating.
Nor would it change the fact that the SEC is STILL pressing charges against TWO Apple execs for the part they played in the ILLEGAL stock options backdating scam, like I have already provided links to over and over again in my earlier posts, only for you to ignore reality, and keep coming back with the same lunatic Applebot nonsense.
Let's try this again: Something funny going on, company investigates, company finds the culprits, company turns them over to the SEC for prosecution.
The company and the CEO are in the clear. The SEC prosecuted the culprits. Is that so hard to understand?
During 1990s, Microsoft Practiced Variation of Options Backdating — Wall Street Journal, 2006.”
Chortle!
Umm... my post was in reply to your post about Microsoft dropping stock options altogether, which you tried to compare to Apple's ILLEGALLY backdating stock options .
Not to mention, you are comparing Microsoft stock options being dated in the same month that the options were issued, to Apple backdating stock options back to YEARS, before the stock options were issued, something that indicates premedidated plot to commit a crime by Apple's execs.
That is laughable.
Even on top of that, Microsoft actually voluntarrily took charges for even that, with no SEC investigations.
From your own link:
“Those practices, which Microsoft ended in 1999 after seven years, amounted to a variation of backdating of the options, since they couldn't be priced at the low for a month until the month was over. That approach to compensation — retroactively locking in a low price at which an options holder can buy stock — has become the subject of a widening series of inquiries at other companies by federal authorities.
Unlike many of those companies, Microsoft voluntarily stopped the practice and disclosed it. In a news release issued on July 19, 1999, the company said it was ending the monthly-low policy and taking a $217 million charge
The difference between Apple and Microsoft is, Microsoft decided to take charge to cover this pricing of options within the same month they were issued, without anyone from the SEC demanding that they do so, with a gun pointed at their heads.
Apple had to ubderngo a tough investigation of their far more egregious backdating scam, and be under the threat of SEC charges, before they would do what is right.
Shows the difference between the two firms.
Umm.. you left out this little part:
STOCK OPTIONS
“In fiscal year 2004, we began granting employees SAs rather than stock options as part of our equity compensation plans. Since then, stock options issued to employees have been issued primarily in conjunction with business acquisitions. Nonqualified stock options were granted to our directors under our non-employee director stock plan until 2004 when we began granting directors SAs. Nonqualified and incentive stock options were granted to certain officers and employees under our employee stock plans. Options granted between 1995 and 2001 generally vest over four and one-half years and expire seven years from the date of grant, while certain options vest either over four and one-half years or over seven and one-half years and expire 10 years from the date of grant. Options granted after 2001 vest over four and one-half years and expire 10 years from the date of grant. We granted one million, 10 million, and two million stock options, respectively, in conjunction with business acquisitions during fiscal years 2009, 2008, and 2007.”
Oh dear!
No, my post was clearly about Microsoft doing backdating and then dropping the practice. Face it, you said "Microsoft didn't do options backdating" which is flat-out false.
I was wrong though. I thought you'd try to weasel out of that statement because the title said "a variation of." You instead tried a different tactic, lying about my posts.
Apple backdating stock options back to YEARS, before the stock options were issued
Evidence required. The one the girl is being prosecuted for was over a month, about the same time Microsoft used to date theirs. Apple's normal backdating practice was within the week.
Microsoft voluntarily stopped the practice and disclosed it.
That would seem to go against your claim that Microsoft didn't do backdating.
The difference between Apple and Microsoft is, Microsoft decided to take charge to cover this pricing of options within the same month they were issued ... Apple had to ubderngo a tough investigation of their far more egregious backdating scam, and be under the threat of SEC charges, before they would do what is right.
Apple ordered its own investigation without being forced by the SEC. Of course you can't do what's right before the investigation is complete, because until then you don't know what is right.
Now about your claims that Jobs settled with the SEC and that Microsoft no longer issues stock options. Care to back those claims, or would you like to try to wiggle your way out of them? Or maybe you could just be honest and admit they were false.
Let's try again shall we?
Illegal stock options backdating go on at Apple. After hearing about it, the SEC come in and launch an investigation into Apple. The SEC ends pressing charges against 2 Apple execs relating to illegal stock option backdating, and force the CFO to settle with the SEC.
Now, a company is it's execs, and it's employees, it's not the buildings. If top Apple execs who are in charge of finance, are found guilty of stock options backdating, that is the same as Apple being found guilty of illegal stock options backdating.
You can't turn round and say “Hey, these guilty people are separate from Apple, so Apple is not guilty”.
They "merely stopped offering any stock options altogether," and yet here they are, issuing stock options.
Seriously, your lack of knowledge of the industry is amazing.
Oh dear, indeed!
Ummm..the SEC is currently pressing charges against TWO ex Apple employees. I have given you links to, over and over again, but you just can't see so good.
“”Microsoft didn't do options backdating” which is flat-out false.’
Dating a stock option within the same month in which the options were issued as Microsoft did, was not something the SEC considered worth launching an investigation into. However, the SEC DID launch a very serious investigation into Apple for options backdating though.
I think the SEC know when a criminal backdating has been done when they see one, like in the case of Apple, and when it's npt been done, as in the case of Microsoft.
“Apple ordered its own investigation without being forced by the SEC”
ROFL!
Apple launched their investigation AFYER the SEC had already started investigating them, in an all too obvious, pathetic attempt to fool the SEC into thinking Apple was doing ‘the right thing”. It didn't work. Charges were still pressed by the SEC.
Meanwhile, the SEC never even investigated Microsoft for options backdating, let alone press charges.
Actually, yes. The SEC can sue or take administrative action against a company. The SEC can penalize individuals and refer them to prosecutors. Two separate things.
The SEC will go after a company when it finds a culture of corruption and a general policy counter to the law. It does the same to individuals when they break the law or violate accounting practices. Such was the case here, as Anderson was found to be violating company policy and lying to Apple's auditors to cover it up.
The company was clean, but the individual was dirty.
Note again that the options were LEGAL. However, Apple had to take a charge for them to clean up their accounting. The massive changes in the Sarbanes-Oxley Act were what brought this out. These LEGAL backdated options are a separate issue (mainly an accounting one) from the issue of those few people who committed illegal acts in relation to them.
Naaaah.
I know about that one.
Point is, Microsoft itself DID stop offering stock options to it's own regular employees.
However, when Microsoft makes acquisitions, and the empoyees of that company already have stock options as part of their contract/compensation, Microsoft may have to keep offering these employees from the new company stock options.
Doesn't change the fact that Microsoft stopped offering stock options to its regular employees does it?
Actually no.
” The SEC can sue or take administrative action against a company. The SEC can penalize individuals and refer them to prosecutors. Two separate things”
I am yet to hear the SEC say that these employees went “rogue.
Apple CFO Anderson, who made a deal with the SEC, emphatically stated that he fully informed Steve Jobs of the legal implications of stock option backdating, and that Jobs was fully aware of what was going on, and still let it go on anyways. That is Apple being guilty right there.
Even Marketwatch is not buying it:
“In other words, there seem to be an awful lot of people around Steve Jobs who have allegedly had problems linked to the backdating of stock options. I'm just saying.
.........................
But as yet another executive who was once close to Jobs comes under the backdating cloud, one has to wonder: Is Jobs as innocent as Apple Inc. and its board have repeatedly claimed? Or is the government afraid to go after one of the most respected leaders of American business?
http://www.marketwatch.com/story/steve-jobs-haunted-by-backdating-scandal-again";
The SEC has not really stopped looking at Apple.
Nancy Heinen was charged only a year ago, in May 1, 2008, long after after they "settled ' with CFO Anderson, when everyone thought the SEC had long ago finished their Apple investigations. Well, they hadn't.
Personally, I think the reason why Apple decided to back cap and trade , and leave the US Chamber of Commerce in a very loud, attention grabbing manner, screaming 0bamabot cap and trade propaganda, was just so the 0bama Justice Department doesn't press further charges against Apple. Its exactly the kind of thing the 0bama Chicago mafia would do.
Yet they were backdating, contrary to your assertion. It is impossible for you to admit it though.
However, the SEC DID launch a very serious investigation into Apple for options backdating though.
The key difference here is that Microsoft stopped their backdating before Sarbanes-Oxley. Had they been doing it in 2002, they would have been caught up in this as most tech companies were.
Your attempt to portray Jobs as greedy is pathetic. He has exercised his options and sold his stock once, and that was to pay for the taxes he owed on the rest of his stock. The rest of that money is still in Apple, not in Jobs' bank account.
And somehow this dirty company got high praise from the SEC for its proactiveness and openness in full disclosure.
Doesn't sound like "altogether" to me. No, you said absolutely that Microsoft stopped offering stock options. You are incredible.
I have yet to hear of any SEC action against Apple. The charges against Anderson show a rogue employee, violating policy and lying to auditors. That Anderson is trying to implicate Jobs to save his own skin is pathetic.
I think the reason why Apple decided to back cap and trade
Maybe because Jobs is a vegan environut leftist? Seems like the simpler explanation.
It’s altogether if they they don't offer them to regular employees, but only offer them during acquisitions.
“No, you said absolutely that Microsoft stopped offering stock options.’
They did. Back in 2004.
” You are incredible’
That is coming from a guy, that started this thread, by thrwing bombs about Microsoft “dogding taxes”, at a time when the IRS is yet to make any claim that Microsoft has done anything illegal, or indeed even launche ANY investigation into Microsoft for not paying legaly due taxes.
Yet at the same time, turn round and swears that Apple, which in contrast to Microsoft, was the subject of a MAJOR SEC investigation leading to two Apple employees being charged, adn one more(the CFO), “settling” with the SEC, means Apple is as white as snow.
You are unbelievable!
You really me laugh.
SEC charges brought against 2 top Apple execs, both very close to Steve Jobs, plus ex Apple CFO(about the second most powerful guy at Apple outside Steve Jobs), not only settling with the SEC, he swore that Steve Jobs knew about everything that was going on, and knew the full legal implications too, which is directly contradictory to what Steve Jobs has been saying. Someone is lying here.
Jobs envioronut huh?
Geen Peace(the envioronuts, have regularly trashed Jobs and Apple for being one of the most environmentally unfriendly electronics manufacturers out there.
“Greenpeace trashes Apple again”
With a score of 2.7 out of 10, Greenpeace placed Apple at the bottom of the list as the worst offender. Lenovo, Nokia, Sony Ericsson, Dell and Samsung topped the green-friendly list.
“For a company that claims to lead on product design, it is perhaps surprising to find Apple languishing at the bottom of the scorecard,” Greenpeace stated in the guide."
http://www.cnet.com.au/greenpeace-trashes-apple-again-339274720.htm
Doesn’t, much sound like an environut to me. Yet suddenly, Apple is out shilling for cap and trade, trashing the US Chamber of Commerce, and repeating 0bamabot propaganda.
Right on to that. You nailed it. More power to Microsoft for doing this. With the Socialist Ways that this current government is headed I say “Way To Go Microsoft!!!”. Sticking it to the MAN, Legally. This is so cool. :)
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