Apple options backdating 2016
Update: Apple has reacted to today's ruling with the following response: "The European Commission has launched an effort to rewrite Apple’s history in Europe, ignore Ireland’s tax laws and upend the international tax system in the process.
"The decision leaves me with no choice but to seek cabinet approval to appeal.It also confirmed that high levels of share options were associated with more extreme ups and downs in a firm's share price, and that the big downs significantly exceeded the extreme highs.The authors conclude that “not only does this asymmetry affect the selection of strategic initiatives, as we have discussed, but it may also cause CEOs to be inattuned to early signs of project failure and generally careless about risk mitigation.” Surely this is not the sort of motivational incentives that shareholders want.ONLY yesterday stock options seemed to be a sort of corporate wonder-drug, doing to business what steroids do to weight-lifters: dose up your executives, and watch your profits grow.Now, like steroids, everyone is more concerned about the nasty side-effects, which can include jail time for executives who backdate them to give them more oomph.It will have a profound and harmful effect on investment and job creation in Europe.
Apple follows the law and pays all of the taxes we owe wherever we operate.
In unequivocal wording, the EU commissioner Margrethe Vestager said Apple's tax benefits in Ireland are "illegal".
"The Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple.
Therefore in 2014 Apple paid 0.005 percent tax on EU profits, which means that "For every million euros in profits, it (Apple) paid just €500 in taxes," said Vestager.
"This is based on an in-depth investigation, it's based on the facts.
One possible explanation is that everyone in Silicon Valley at the time was so convinced in the potency of options that the possibility of illegality was not even contemplated.