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MacRumors
Dec 4, 2012, 10:03 PM
http://images.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2012/12/04/apple-svp-of-internet-software-and-services-eddy-cue-cashes-in-8-8-million-in-stock/)


http://images.macrumors.com/article-new/2011/09/eddy_cue_headshot-150x171.jpgApple Senior Vice President of Internet Software and Services Eddy Cue has decided to sell off 15,000 shares of his stock for about $8.8 million, according to a recent regulatory filing. (http://investor.apple.com/secfiling.cfm?filingID=1127602-12-32806&CIK=320193) He sold off his Apple stock for about $583.99 a share.

The stock that Cue cashed in is not part of the 100,000 restricted stock units (RSUs) (http://www.macrumors.com/2011/09/02/apple-awards-eddy-cue-100000-shares-of-stock-as-promotion-bonus/) he received in September 2011 as a promotion bonus. Half of those shares vest on August 24, 2013 while the other half vest on August 24, 2015 if Cue is still with the company.

Today's regulatory filing reveals that Cue still has 285 shares of Apple stock remaining, but The Next Web notes (http://thenextweb.com/apple/2012/12/05/apple-svp-of-internet-software-and-services-eddy-cue-sells-15k-shares-of-stock-worth-roughly-8-8m/) that next year those shares will be bundled in with the 50,000 coming from the first batch of last year's promotion bonus RSUs. Cue has received 76,250 RSUs over the past five years.

Last September, Cue was elevated to the senior management team (http://www.macrumors.com/2011/09/01/apples-eddy-cue-promoted-to-senior-vice-president-for-internet-software-and-services/), and he was recently put in charge (http://www.macrumors.com/2012/10/29/management-restructuring-at-apple-forstall-and-browett-out-ive-and-others-add-responsibilities/) of both Siri and Maps. He was also added to Ferrari's Board of Directors.

Cue cashing in does not necessarily mean that he is less invested in Apple. Senior Vice President of Technologies Bob Mansfield, Cue and other Apple executives may be looking to unload stock in 2012 (http://www.macrumors.com/2012/11/29/apple-svp-of-technologies-bob-mansfield-cashes-in-over-20-million-in-stock/) as capital gains tax increases are scheduled in 2013. By selling now rather than in 2013, sellers can reduce their tax burden, and all of the senior executives are in line to receive substantial stock awards if they continue working at the company.

Article Link: Apple SVP of Internet Software and Services Eddy Cue Cashes in $8.8 Million in Stock (http://www.macrumors.com/2012/12/04/apple-svp-of-internet-software-and-services-eddy-cue-cashes-in-8-8-million-in-stock/)



TheMacBookPro
Dec 4, 2012, 10:06 PM
Time for some new Ferraris!

WatchTheThrone
Dec 4, 2012, 10:11 PM
Make it rain Eddy!!!!

justperry
Dec 4, 2012, 10:15 PM
Good for him.

Time for some new Ferraris!

You should say time for a new beamer M5;)

TheMacBookPro
Dec 4, 2012, 10:25 PM
You should say time for a new beamer M5;)

With 8.8mil & a seat on Ferrari's board, I think he'd take a new FF if he needs a practical family car ;) I know I would!

mrgraff
Dec 4, 2012, 10:28 PM
He's earned every penny, and good on him. That said, I wish I could "decide" to cash in $8.8 million!

Eric E. Schmidt
Dec 4, 2012, 10:29 PM
eddie and bob (http://forums.macrumors.com/showthread.php?t=1499016) trying to outdo each other xmas shopping this year?

wonder what they'll get me.

ixodes
Dec 4, 2012, 10:32 PM
It's good to witness the choices & timing of these sell offs. Proves that Apples top execs are paying attention. They know the hammers about to fall & they're getting out of the way. Smart men.

yensteel
Dec 4, 2012, 10:45 PM
I think they're protecting their investment before it's stocks fall. Two times is a big coincidence.

mrsir2009
Dec 4, 2012, 10:53 PM
Everyone's cashin' in dat stock :D:D:D

Verbatim Cookie
Dec 4, 2012, 10:53 PM
You should say time for a new beamer M5;)
I have been informed that a beamer (or beemer) is a BMW motorcycle; a BMW with four wheels is a bimmer.

Mak47
Dec 4, 2012, 10:54 PM
I think they're protecting their investment before it's stocks fall. Two times is a big coincidence.

There's nothing coincidental about it. After this year capital gains and numerous other taxes are set to skyrocket in the US. It's only sensible that these guys would sell now.

Mansfield is only a few years away from actual retirement. Cue's been at Apple a very long time as well. If they cash out now, they can do what they want with the money, if they wait, they'll have to hand a bunch of it over the the IRS.

mrsir2009
Dec 4, 2012, 10:55 PM
eddie and bob (http://forums.macrumors.com/showthread.php?t=1499016) trying to outdo each other xmas shopping this year?

wonder what they'll get me.

...Trying to outdo each other for the secret santa at the Apple employee XMAS party!

justperry
Dec 4, 2012, 11:07 PM
With 8.8mil & a seat on Ferrari's board, I think he'd take a new FF if he needs a practical family car ;) I know I would!

Just pointed to your nice Avatar.:cool:
Ferrari's are nice on the racetrack, otherwise they are rubbish, I'll take a BMW M3 over a Ferrari any day.

I have been informed that a beamer (or beemer) is a BMW motorcycle; a BMW with four wheels is a bimmer.

You know what beamer actually means, where I am from it is because many of them end up in those safety guards (On roads), and that's why we call them beamer.

(Spelling aside)

TheMacBookPro
Dec 4, 2012, 11:21 PM
Just pointed to your nice Avatar.:cool:

Hah, I know :)

Ferrari's are nice on the racetrack, otherwise they are rubbish, I'll take a BMW M3 over a Ferrari any day.

I haven't driven an FF, but you'd be surprised at how 'normal' a California is. Very easy to drive, though I'm not a fan of the stying.

HiRez
Dec 4, 2012, 11:30 PM
It may be smart in the short term, maybe not smart in the long term. If they're selling just to avoid a 5% capital gains tax increase, they're going to "lose" money if Apple stock goes up by an amount more than what it would take to cover the difference, which is not much. Of course, it's wiser to cash in and secure your family (especially if you have boatloads more shares on the way) than to potentially be left with nothing if a catastrophe happens. I'd probably do the same if I were in their position, however I am holding onto my AAPL because I think eventually it's going to go up more than any capital gains increase will take away.

Solomani
Dec 4, 2012, 11:57 PM
It may be smart in the short term, maybe not smart in the long term. If they're selling just to avoid a 5% capital gains tax increase, they're going to "lose" money if Apple stock goes up by an amount more than what it would take to cover the difference, which is not much. Of course, it's wiser to cash in and secure your family (especially if you have boatloads more shares on the way) than to potentially be left with nothing if a catastrophe happens. I'd probably do the same if I were in their position, however I am holding onto my AAPL because I think eventually it's going to go up more than any capital gains increase will take away.

It depends. It's smart for them to cash out now (so as to avoid the capital gains tax increase) but only makes sense if they NEED to spend that money right now, for example the Apple Exec needs to pay for his daughter's lavish wedding, etc.

But if they are simply cashing out to SHELTER that money to avoid the 5% capital gains tax increase, then it will likely be a short term gain, but potentially long-term loss if AAPL valuation continues to grow and the company continues its trajectory as a $$$trillion-dollar company (predicted within the next 3 years by several analysts).

Then again, Apple will never become a trillion dollar company if the Mayans are correct about December 2012. Or if Samsung allies itself with the North Korean dictatorship and they decide to spitefully nuke Cupertino.

xxgilxx
Dec 5, 2012, 12:08 AM
Looks like Daddy Cue needs a new mansion...

thekev
Dec 5, 2012, 12:21 AM
It may be smart in the short term, maybe not smart in the long term. If they're selling just to avoid a 5% capital gains tax increase, they're going to "lose" money if Apple stock goes up by an amount more than what it would take to cover the difference, which is not much. Of course, it's wiser to cash in and secure your family (especially if you have boatloads more shares on the way) than to potentially be left with nothing if a catastrophe happens. I'd probably do the same if I were in their position, however I am holding onto my AAPL because I think eventually it's going to go up more than any capital gains increase will take away.

They could also be rebalancing their portfolios at this time.

czeano
Dec 5, 2012, 12:27 AM
I see America has closed the disparity between worker and executive compensation. Great job on the past century of work toward that goal, guys.

MacDav
Dec 5, 2012, 01:12 AM
I think they're protecting their investment before it's stocks fall. Two times is a big coincidence.

Wrong... Capital gains tax goes from 15% to 20% Jan 1st 2013. Although, with everybody cashing in before the end of the year Apples stock price probably will fall, but then rise again in January. If it rises 5% then the price is on par with today's value. ;)

Shasterball
Dec 5, 2012, 04:47 AM
It's good to witness the choices & timing of these sell offs. Proves that Apples top execs are paying attention. They know the hammers about to fall & they're getting out of the way. Smart men.

????? No, they are trying to avoid possible/likely tax in creases in a couple of weeks.

everything-i
Dec 5, 2012, 05:43 AM
I think they're protecting their investment before it's stocks fall. Two times is a big coincidence.

No, this is a Tax issue as the tax they would have to pay rises sharply in the new year.

Although one could also argue that holding on to stock at the company you also work for is strategically a bad position because if the company gets into trouble you can lose your job and your investments in one go. Not that its likely to happen at Apple any time soon though;)

kas23
Dec 5, 2012, 06:48 AM
Wrong... Capital gains tax goes from 15% to 20% Jan 1st 2013. Although, with everybody cashing in before the end of the year Apples stock price probably will fall, but then rise again in January. If it rises 5% then the price is on par with today's value. ;)

Does it make sense that they are cashing in their stock, a stock at a relative low (down about 20% from $700), just so they can avoid a 5% increase in taxes?

GenesisST
Dec 5, 2012, 07:07 AM
It's good to witness the choices & timing of these sell offs. Proves that Apples top execs are paying attention. They know the hammers about to fall & they're getting out of the way. Smart men.

Well, what's the point of having stocks if they remain pieces of paper in a safe. Better they spend that money themselves than their estate...

And they still have a ******** of them...

Tiger8
Dec 5, 2012, 08:28 AM
Does it make sense that they are cashing in their stock, a stock at a relative low (down about 20% from $700), just so they can avoid a 5% increase in taxes?

I am sure a handsomely paid accountant crunched the numbers and decided now is the time to sell.

Builddesign
Dec 5, 2012, 09:50 AM
...now that's a Holiday bonus.

Intarweb
Dec 5, 2012, 10:22 AM
I wonder if he knows something is up in Cuperto. Apple was down nearly 6% earlier and is hovering down 4%.

Plutonius
Dec 5, 2012, 11:35 AM
Does it make sense that they are cashing in their stock, a stock at a relative low (down about 20% from $700), just so they can avoid a 5% increase in taxes?

Many financial experts are predicting a recession after we go over the fiscal cliff at the end of the year. All stock prices including Apple would go considerably lower. Most likely, the Apple employees who are selling their stock believe that selling now is better then paying the tax increase and hoping that the Apple stock price will go higher (in a recession it will fall).

----------

I wonder if he knows something is up in Cuperto. Apple was down nearly 6% earlier and is hovering down 4%.

I'm not sure if somethings up but many people are getting out of the market (not just Apple).

ksnell
Dec 5, 2012, 12:55 PM
Yes, they probably want to be taxed at the current corporate gains rate now. However, to my knowledge, this just means that their unrealized gains become realized and those gains are taxed (at the lower rate). They can then repurchase the stock if they choose, at which point their stock basis essentially resets to new market value (because they were just taxed on the gains up to that amount) so there will be less future gains taxed at the new (higher) rate in the future.

kas23
Dec 5, 2012, 01:54 PM
Many financial experts are predicting a recession after we go over the fiscal cliff at the end of the year. All stock prices including Apple would go considerably lower. Most likely, the Apple employees who are selling their stock believe that selling now is better then paying the tax increase and hoping that the Apple stock price will go higher (in a recession it will fall).

----------



I'm not sure if somethings up but many people are getting out of the market (not just Apple).

Yes, I agree with this reasoning. Whether or not we actually go over this fiscal cliff is another story. Either way, cliff or no cliff, I don't think the economy is going to respond favorably. Those of you nearing retirement better get your portfolios in order ASAP. Those who are not, get ready for an excellent buying opportunity.

JHankwitz
Dec 5, 2012, 02:38 PM
No, they are trying to avoid possible/likely tax in creases in a couple of weeks.

Correct. The masses voted for tax & spend, so investors need to make adjustments just like we all should be doing. I'm not receiving any entitlements, so I just need to bend over and take it. Looks like the hard earned money I saved up or a new iMac will now be used to support the new redistribution of wealth society.

ixodes
Dec 5, 2012, 05:18 PM
????? No, they are trying to avoid possible/likely tax in creases in a couple of weeks.

That's exactly what I was referring to.

kas23
Dec 5, 2012, 05:56 PM
Apple stock falls 6.6% right after Eddy cashes in. Hmmm.

kas23
Dec 5, 2012, 07:08 PM
Correct. The masses voted for tax & spend, so investors need to make adjustments just like we all should be doing. I'm not receiving any entitlements, so I just need to bend over and take it. Looks like the hard earned money I saved up or a new iMac will now be used to support the new redistribution of wealth society.

Thank you for my new iMac Mr Hankwitz, and my new pair of $200 basketball sneakers. ;)

MacDav
Dec 6, 2012, 06:20 AM
Does it make sense that they are cashing in their stock, a stock at a relative low (down about 20% from $700), just so they can avoid a 5% increase in taxes?

If you try and second guess what they are up to you'll go crazy. Wait till the end of January next year, hopefully Apple will have a blowout 4th quarter and we'll see $700 again. If not, oh well. When you own 10,000 or more shares of Apple stock you "Think Different" than the rest of us. ;)

Shasterball
Dec 8, 2012, 09:51 AM
That's exactly what I was referring to.

Aha -- I thought perhaps the hammer at Apple was falling. I'm very happy their stock is under pressure. Perhaps we will see some more innovation now and less iteration.

seveej
Dec 19, 2012, 03:22 AM
Apple Senior Vice President of Internet Software and Services Eddy Cue has decided to sell off 15,000 shares of his stock for about $8.8 million, according to a recent regulatory filing. (http://investor.apple.com/secfiling.cfm?filingID=1127602-12-32806&CIK=320193) He sold off his Apple stock for about $583.99 a share.


Dear Eddy,

in case you are
a) reading this and
b) wondering how to use the money,

Please remember there are a lot of people out there who could really used things like:
- food
- medicine
- shelter
etc.

Thank you for your time, and have a nice christmas.

RGDS,