The smell over the Apple share backdating mess gets worse and worse.

Now the Securities and Exchange Commission has widened its investigation into the matter after it emerged that Apple chief executive Steve Jobs had signed an options package for a Pixar ally during his time running the film company. By signing off on a well-timed options grant for John Lasseter, director of hit films such as Toy Story and A Bug's Life, he delivered Mr Lasseter a potential profit of $6.4 million.

More on this from The Times.

Disney bought Pixar in May last year for $7.4 billion. Jobs relinquished control of Pixar after the deal and now now sits on the board of Disney, in which he is the biggest shareholder. And therein lies the problem. If backdating pumped up Pixar's profit, Disney might have paid too much money for the studio, benefiting its biggest shareholder.

For a closer look at the issues, check out this piece from the Los Angeles Times.

Last month, I asked whether Steve Jobs was untouchable. Certainly the latest development make the answer to that question even more problematic.