In my book, Pixar stood alone among the major Hollywood studios as a fantasyland, a Wonka-esque factory where dreamers could finally make their wildest imaginings a reality. From the little I have seen of the inner workings of Pixar itself, the place hums with creativity, a steady, business-like workmanship in decidedly informal attire. And for us, the obsessively-jaded movie lovers, Pixar always produced unfailing brilliance: water-tight stories, brilliant, thoughtful characterizations, wondrously composed images, and an attention to detail bordering on maniacal. Among movie studios, Pixar was not just another money-slurping machine; Pixar was our
friend. So when
Variety reports that Pixar's top executives are being investigated for options fraud, my heart does a little a little spin on the edge of a cliff and then dives off. According to Variety, John Lasseter and Ed Catmull are being investigated for options they received between 1997 and 2003 which have questionable dates. This news comes as Steve Jobs, one of the founders of Pixar, faces serious inquiries into options scandals within Apple, Inc. The process of backdating company options involves changing the dates on options to dates when a company's stock price is at its lowest, thereby giving the owner of the options the best possible return. This process is not always illegal; to avoid legal ramifications, a company's board of directors must approve the backdating. According to the inquiry, top Pixar executives received options backdated to the years 1997, 1998, 2000, and 2003, all years of recorded lows within the company's stock profile. In the case of Pixar, whose overall stock has risen sharply over the years since 1997, backdated stock options become enormously profitable. According to Variety, "if Catmull's and Lasseter's options were backdated or springloaded, execs could have automatically pocketed, on paper, as much as $12 million in Lasseter's case and $6 million in Catmull's." Could Lasseter, Catmull, and others in the highest echelons of Pixar lose their, um, Jobs? It certainly seems possible; to date, 18 CEO's have lost their positions due to options fraud. This is terrible news to movie fans. Finding out that John Lasseter might be a criminal is like finding out that Mr. Rogers fingered Mr. McFeely in the land of make believe. I certainly hope it's not true. I still want to believe in miracles and goodness and righteousness, even in the tar-black heart of Hollywood.