Compared to the Enron / Worldcom blowups, the options pricing scandal we're going through now is very low key. Enron et al were front page news for a long time. The options scandal is strictly a page 8 item in the business section. And yet, in a lot of ways the options issue is having a far bigger impact on corporate America. It seems that almost weekly there is a CEO resigning over this issue. While it might not be putting people in jail, there are a lot of high priced CEOs without a job today.

So far, it appears that a CEO or CFO must resign if they benefited from the favourable option pricing. Knowing about the scheme and condoning it is not enough to lose your job.

Certainly, that was the measuring stick that Apple's board has used in assessing Steve Jobs' situation. The board, led by Jerome York, chairman of the audit committee, and director Al Gore, did an internal investigation into options pricing at Apple. Their work uncovered some improprieties and the company will be taking an accounting charge in recognition of that. It also determined that Steve Jobs knew and supported the pricing scheme, but did not directly benefit from it. Therefore, he is not being asked to step down.

It will be interesting to see if the SEC, which will now look at Apple, sees it the same way.

The Apple situation reminds me of what WestJet went through earlier this year when CEO Clive Beddoe admitted to knowing about the corporate espionage his people were doing against Air Canada, but wasn't forced to resign.

Should a CEO be forced to resign if he or she knowingly supports an illegal or unethical activity? Should it matter that the CEO has done all kinds of wonderful things for the shareholders and is revered by fans and enemies alike?

It's an interesting ethical issue that makes for great dinner table discussion.