Apollo’s Stock Option Woes

Inside Higher Ed:

The Apollo Group, which owns the University of Phoenix, announced Friday that one top financial officer has resigned and another is on administrative leave as the for-profit higher education company continues to investigate its practices for awarding stock options to employees. The company’s news release reiterated earlier statements that the investigation had uncovered “various deficiencies,” and said that the failings would require the company to restate previous earnings statements “to record additional charges for compensation expenses relating to past stock option grants.” In a conference call Friday, company officials said the findings would have no ill effects on the institutions’ educational operations. Apollo officials said that the chief financial officer and treasurer, Kenda B. Gonzales, had resigned last week, citing personal reasons, and the the company’s chief accountant, Dan Bachus, is on administrative leave.

Follow