Apple Hardware Chief Bob Mansfield Cashes in Nearly $12.5 Million in Stock Options

[JOHNGAETANO]

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Great for Bob. Congrats!!

[JOHNGAETANO]

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For those jealous people, everyone had a chance to buy these shares at $6.00, but there were doubters then. Be happy for him!!

[ultravioletfly]

Originally Posted by MagnusVonMagnum

yes it might hit $500 for awhile, but gaining $50 isn't worth the risk of it dropping hundreds like it did a few years ago when it went from around $300 to $83 almost overnight).

Uh, when did it ever go from $300 to $83? I see on the chart that once (during the height of the Lehman/Bank crisis), it went from $200 to $83.

[mactoday]

Originally Posted by JOHNGAETANO

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For those jealous people, everyone had a chance to buy these shares at $6.00, but there were doubters then. Be happy for him!!

I bought Apple stocks in june 1998 for $14 and I invested over 6500 bucks in PowerBook G3 292Mhz 128Mb RAM 8Gb HD 14.1" (that was top model) at the same time. Now I have few millions, so don't be jealous. We earned this money because we believed in 6 colors Apple logo.

[IzzyJG99]

Sadly he won't get to keep all 12.5 million. 30% of that will go to the Tax Man. So he really only gets around....8.75 million. What a shame....Lol.

[jimmc]

Originally Posted by MagnusVonMagnum

It's a good time to cash out. He knows with Steve gone, Apple can only go down in the long run and they're already massively over-valued as it is. They were $83 a share just a few years ago. Over $450 a share? Come on. It would be stupid to invest at that price (and yes there are people at work I know buying it because someone told them it was a $500 stock...yes it might hit $500 for awhile, but gaining $50 isn't worth the risk of it dropping hundreds like it did a few years ago when it went from around $300 to $83 almost overnight). And this time it will NOT come back because Apple is now run by the same types that destroyed it the first time around. Apple has a few more years of profitability based on current products like the iPhone and iPad, but without a visionary to keep the products coming, it's only a matter of time and the stock will start slipping LONG before the profits end (and you don't make a dime when it drops...you lose your shirt and everything else you put into it). Clearly, Bob Mansfield is fully aware of this as the hardware chief and he's taking it to the bank. Kudos to Bob.

This is a troll, right?

[seamuskrat]

While I know you are trolling, I add my 10 cents.

Aside from the obvious expiration of the options and such you lack knowing any of his actual circumstances. Perhaps he is building a house? Paying off some loans, taking a trip around the world. Whatever, perhaps he just needed a few million to roll in after a hard day of work! But without knowing any of his motivations you cannot assume it is because he fears Apple will tank.

Lets be honets, Apple has a ton of actual cash and securities. A portion of their market cap could be paid out immediately. They have a patent portfoli worth billions as well. Add in real estate assets and you nearly reach their value BEFORE adding IP and design, and anything else. All in all, Apple is a fairly safe stock to be in. They have a long recent history of doing well, and have few major threats in the short term and plenty of assets to cover their market cap, growth and plans.

AAPL has outperformed many indexes and others in most very other sector on Wall Street. That makes it a valuable stock. Can it drop- sure, but unless the entire world economy taks along with it, it cannot have a drop like we witnessed in the past. Apple has too much material value to make a drop like that matter. Odds are, even if Tim Cook et all were supremely lousy managers Apple would remain very profitable for another decade.

Steve played a long game. It was a gamble that paid off. He knew where his strategy with the Mac failed and Apple went wrong and set things up to ensure he could still keep his closed systems and have an ecosystem that sponsored growth and change.

Originally Posted by MagnusVonMagnum

It's a good time to cash out. He knows with Steve gone, Apple can only go down in the long run and they're already massively over-valued as it is. They were $83 a share just a few years ago. Over $450 a share? Come on. It would be stupid to invest at that price (and yes there are people at work I know buying it because someone told them it was a $500 stock...yes it might hit $500 for awhile, but gaining $50 isn't worth the risk of it dropping hundreds like it did a few years ago when it went from around $300 to $83 almost overnight). And this time it will NOT come back because Apple is now run by the same types that destroyed it the first time around. Apple has a few more years of profitability based on current products like the iPhone and iPad, but without a visionary to keep the products coming, it's only a matter of time and the stock will start slipping LONG before the profits end (and you don't make a dime when it drops...you lose your shirt and everything else you put into it). Clearly, Bob Mansfield is fully aware of this as the hardware chief and he's taking it to the bank. Kudos to Bob.

[wordoflife]

Originally Posted by rdowns

Did you even read the story before you posted?

I'm going to go with "no"

[forty2j]

Originally Posted by Dhelsdon

I hate hearing about other people getting rich.. What I would do for a handful of AAPL stocks!!

I almost bought a block in 1997.

I bought Netscape instead.

[GenesisST]

Originally Posted by forty2j

I almost bought a block in 1997.

I bought Netscape instead.

Hindsight is always 20/20, my friend. You probably did the best with the information you had at the time.

Heck, I would've started Facebook in 2002 if I'd known...

[smartalic34]

Smart guy...

[madmaxmedia]

Originally Posted by TurboMoses

No one can call him an idiot for making out with over 12 million, really.



His bro looks just as stoked:
Image

LOL, Chris Farley is who came to mind when I saw the pic.

[Ice Dragon]

Smart move on his part. Sell it at its peak. It could go higher though it could go lower.

[QCassidy352]

Originally Posted by GenesisST

Hindsight is always 20/20, my friend. You probably did the best with the information you had at the time.

Heck, I would've started Facebook in 2002 if I'd known...

apropos of nothing, you have the best signature I've seen in my 9 years on this site.

[corywoolf]

Originally Posted by surf2snow1

Remember AAPL hit $3 in 1997. People still invested when it got to $83. Its a strong company now.

Exactly. Also there is a good chance if the stock keeps going up it will be split again (happened a few years back).

For example.

1 Share of AAPL @ $500.00 --> 2 Shares of AAPL @ $250.00

[porky]

Originally Posted by nick_elt

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I suppose you think the world will end in december aswell so everyone sell up and buy a bunker!

Some people even believe in God

[Rocketman]

The number one reason for Apple executives to sell most of their stock is diversification. Having all your eggs in one basket shows commitment, but also financial stupidity. This guy has regularly diversified when he had the option and when the stock price was in a short term recent high. Even with the $12.5m he sold he has a portfolio of more than $114m remaining of just that one stock. So I will not be surprised if he exercises his next option and sells all of it just after some public news event that spikes the stock price.

He earned it, now he wants to RECEIVE it. Look at the fate of folks who kept their stock in GM or Kodak because they were "big companies" or were "true believers".

Oops.

Even Zuckerberg of Facebook put in the SEC filing he plans to sell some of his own shares in the IPO so he can partially cash out. Diversification and liquidity. There is already a robust volume for the pre-filing Facebook stock. It is estimated to go up about 350% in value on completion of the IPO.

Rocketman

[gnasher729]

Originally Posted by Rocketman

The number one reason for Apple executives to sell most of their stock is diversification. Having all your eggs in one basket shows commitment, but also financial stupidity. This guy has regularly diversified when he had the option and when the stock price was in a short term recent high. Even with the $12.5m he sold he has a portfolio of more than $114m remaining of just that one stock. So I will not be surprised if he exercises his next option and sells all of it just after some public news event that spikes the stock price.

Fact is that you can't buy a nice house, or a nice car, with stock options. You have to turn the stock options into cash first.

[Rocketman]

Originally Posted by gnasher729

Fact is that you can't buy a nice house, or a nice car, with stock options. You have to turn the stock options into cash first.

Nope. Those 2014, 2018 whatever options are themselves securities with a current mark to market value, even if somewhat illiquid. That sits in a brokerage account and can be leveraged to purchase other stock. Let's say the present value of the $114m in options is about $5m. The person can get a margin loan for about $15m and buy stuff, invest in other securities like Facebook or Microsoft stock, or even a cash equivalent like muni bonds and such, the income from which more than covers the margin loan interest.

The secondary advantage is further diversification and gradual earnings to liquidate the margin debt even if you don't transact the options when eligible.

So yes you can buy a car, put a kid through college and go to Togo's without touching the options themselves.

Rocketman

[toddybody]

He looks like that chubby middle school bully.

[GenesisST]

Originally Posted by QCassidy352

apropos of nothing, you have the best signature I've seen in my 9 years on this site.

I wish I could say I made it up myself, but I copied it from the Civil War era Internet... :-)

[powers74]

Originally Posted by BrentD

The guy can probably do that with a month's salary...

Ok, fine, neg me.

[cvaldes]

Originally Posted by Rocketman

So I will not be surprised if he exercises his next option and sells all of it just after some public news event that spikes the stock price.

He earned it, now he wants to RECEIVE it. Look at the fate of folks who kept their stock in GM or Kodak because they were "big companies" or were "true believers".

Bob previously worked at SGI and Raycer Graphics.

He certainly walked away from SGI with a bunch of underwater options, and who knows what he got when Apple acquired Raycer (which was made up largely of SGI alumni). Meaning, he got burned before on stock options and this time he's definitely not letting it happen again. My guess is he also participates in ESPP and dumps those shares at the first opportunity he gets.

[macchiato2009]

let's all have a thought for all other Apple employees, sometimes working their ass off from Monday to Sunday to make these guys richer...

[*LTD*]

Originally Posted by macchiato2009

let's all have a thought for all other Apple employees, sometimes working their ass off from Monday to Sunday to make these guys richer...

I believe at one time, Mr. Mansfield was just such an employee, probably working elsewhere, making someone else rich.

We all start somewhere.