Apple Execs Cook, Schiller, and Oppenheimer Sell Millions in Shares as RSUs from 2008 Vest

MacRumors · Mar 28, 2012

Three Apple executives sold millions of dollars in Apple shares after restricted stock units awarded in 2008 vested. The three executives were Apple CEO Tim Cook, Apple CFO Peter Oppenheimer, and marketing chief Phil Schiller. The sales were disclosed in mandatory SEC filings.

- Tim Cook sold 106,640 shares at an average price of $600.79/share, after having 93,360 shares withheld for tax purposes. He netted $64 million.

- Peter Oppenheimer sold 80,147 shares at an average price of just under $599/share, after having 69,853 shares withheld for tax purposes. He netted just under $48 million.

- Phil Schiller sold 64,151 shares at an average price of $602.66/share, after having 55,849 shares withheld for tax purposes. He netted $38.66 million.

A restricted stock unit, or RSU, is a form of compensation valued in terms of company stock, but the stock is not issued at the time of the grant. Instead, it's meant as an enticement for senior management to stay with the company. The shares in question were originally awarded in September of 2008, likely as part of an annual bonus. When they vested on March 24 of this year, each RSU was converted to a single share of AAPL stock.

The executives used a Rule 10b5-1 trading plan to manage the sales of the shares. The regulation allows executives with insider knowledge of the company to control the purchase or sale of stock ahead of time so as to avoid any accusation of insider trading.

Apple executives Bob Mansfield and Scott Forstall also had large RSU awards vest this month, but their shares weren't sold immediately.

Article Link: Apple Execs Cook, Schiller, and Oppenheimer Sell Millions in Shares as RSUs from 2008 Vest

jlgolson · Mar 28, 2012

"Raghghghghg 1%."

"That's more money than anyone needs in a lifetime, they should give it all to charity."

"Think of the poor Chinese workers at Foxconn!"

"They worked hard for their money and they have created a lot of value for the shareholders."

"Who are we to criticize others for their success?"

"They'll pay a huge amount of money in taxes, so we all get something from their success."

Did I cover all the bases?

elmo151 · Mar 28, 2012

jlgolson said:
"Raghghghghg 1%."

Did I cover all the bases?

missed the big one. They earned it and and added to the net worth of millions of shareholders and employees.

hollerz · Mar 28, 2012

I'll admit I don't understand the stock market, but why doesn't selling this many shares cause the stock price to bomb, when selling only 100 shares causes it to drop 9%?

noodlelegs · Mar 28, 2012

I think they can live comfortably now even with the high gas prices.

dwman · Mar 28, 2012

hollerz said:
I'll admit I don't understand the stock market, but why doesn't selling this many shares cause the stock price to bomb, when selling only 100 shares causes it to drop 9%?

I think that had more to do with a glitch then the actual sale of shares.

Elefant · Mar 28, 2012

hollerz said:
I'll admit I don't understand the stock market, but why doesn't selling this many shares cause the stock price to bomb, when selling only 100 shares causes it to drop 9%?

So far 15.8 million shares have changed hands today, so the above ~250.000 shares are not a lot, especially considering how they're probably sold across more than a trading day. I haven't read the prospect though, so I can't be sure.

Regarding the 100 shares that caused it to drop 9%, that was a fluke, and it doesn't reflect anything about price swings in general.

LaWally · Mar 28, 2012

hollerz said:
I'll admit I don't understand the stock market, but why doesn't selling this many shares cause the stock price to bomb, when selling only 100 shares causes it to drop 9%?

A lot of these planned sales of shares are handled as block trades, which are privately negotiated transactions executed apart and away from the open electronic markets. And yes, such sales are permissible and legal.

McGiord · Mar 28, 2012

Wirelessly posted

What will happen afterwards is what should concern us. Is the management style changing after this? Focus on enjoying the well earned money and other people will take over? Slacking becomes Apple's internal doom?

rdowns · Mar 28, 2012

McGiord said:
Wirelessly posted

What will happen afterwards is what should concern us. Is the management style changing after this? Focus on enjoying the well earned money and other people will take over? Slacking becomes Apple's internal doom?

Where do people get this stuff?

McGiord · Mar 28, 2012

rdowns said:
Where do people get this stuff?

What people? What stuff?

The Apple executives got their money by selling their shares.

My comments come from McGiord's mind.

jlgolson · Mar 28, 2012

McGiord said:
What people? What stuff?

The Apple executives got their money by selling their shares.

My comments come from McGiord's mind.

They own many, many more shares that they haven't yet sold, and plenty of Apple execs have sold shares before this. It isn't the first time someone has cashed in.

That said, there's nothing wrong with diversification.

Naaaaak · Mar 28, 2012

They are getting out while they still can. They know the lack of a MacPro update this year is going to send the stock to all-time lows.

rdowns · Mar 28, 2012

McGiord said:
What people? What stuff?

Given that I quoted your post, I meant you. And now I also mean the guy quoted below.

Naaaaak said:
They are getting out while they still can. They know the lack of a MacPro update this year is going to send the stock to all-time lows.

Outdo13 · Mar 28, 2012

- Tim Cook sold 106,640 shares at an average price of $600.79/share, after having 93,360 shares withheld for tax purposes. He netted $64 million.

Actually, he took ownership of 200,000 shares as the restricted stock unit. Six months earlier, he filed a plan with the SEC to sell them upon vesting. He sold 93,360 shares to pay the taxes on the income value of the 200,000 shares he was given ("granted") as the restricted stock unit, and then sold the remaining 106,640 shares for an after-tax gain of approximately $64 Million.

firewood · Mar 28, 2012

Naaaaak said:
They are getting out while they still can.

Exactly.

It's all about diversification (and taxes). Not getting the right percentage out when you can, whether you think the stock is going to drop like a rock or skyrocket, is considers really really stupid by expert financial advisors. Apple executives are not stupid. Steve hated stupidity.

fruitycups · Mar 28, 2012

I want some of those money too. T<T

Rocketman · Mar 28, 2012

hollerz said:
I'll admit I don't understand the stock market, but why doesn't selling this many shares cause the stock price to bomb, when selling only 100 shares causes it to drop 9%?

The 9% thing was a momentary data error not trading momentum. To put these stock sales in perspective, 250,000 shares is about what is traded during the slowest 5 minutes of any given day. Based on the prices stated they sold on different days from each other and probably in small blocks at a time. Zero market impact. Today alone there were two 5 minute periods with about a million shares traded. Slow day.

Rocketman

Nunyabinez · Mar 28, 2012

McGiord said:
Wirelessly posted

What will happen afterwards is what should concern us. Is the management style changing after this? Focus on enjoying the well earned money and other people will take over? Slacking becomes Apple's internal doom?

As was alluded to, these guys are already multi-multi-millionaires. It stopped being about money for them a long time ago. They do what they do because it gives them a sense of accomplishment or because they are playing a game where you win by having your company beat the s*** out of your competition. It is simply prudent to take your grants and cash them out when you are able. As was also mentioned, you shouldn't have all your investments in the place you work. In fact, many financial analysts say you are foolish to invest in the company where you work, because now you not only have your income stream dependent on their success, but your retirement. If they screw the pooch you could be out a job and your retirement. But, obviously these guy aren't going to get screwed, unless it's in a divorce settlement.

Rocketman · Mar 28, 2012

I attached a chart of AAPL today. AFTER the close there were trades, including in a 2 minute interval, almost 150,000 shares. AAPL is perhaps one of the most liquid equities. It has 1B shares outstanding, but 70% are institutionally owned. The actual active shares are a small fraction of the total, but could easily be 1-2% on any given day or about 10m shares, many traded several times a day.

Insider trading and sales on compensation is small potatoes, to insignificant.

To fill the entire ~150,000 share sell order, the stock had to trade down $2 to find enough willing buyers ready to rock.

Rocketman

McGiord · Mar 28, 2012

What is multi-multi?

My point is if this will change the motivation of them?

One thing for sure is that they are not getting any younger, and they are not as driven as Steve Jobs, for as much as they worked pretty well with Steve, they are not like him.

Money changes everything.

jw2002 · Mar 28, 2012

McGiord said:
My point is if this will change the motivation of them?

Why would it? Know you nothing of how incentive stock options work in corporations? So these executives sold some shares in order to exercise newly vested shares. YAWN.

DakotaGuy · Mar 28, 2012

They are the reason this company is successful. They aren't in those jobs because they were "lucky" they are there because they are that good at what they do. I say they deserve every penny they got from selling these stocks because they are the reason the stock price is so good.

Long live Capitalism!

McGiord · Mar 28, 2012

jw2002 said:
Why would it? Know you nothing of how incentive stock options work in corporations? So these executives sold some shares in order to exercise newly vested shares. YAWN.

Because what is the point of having so much money and no time to enjoy it.
Executives are humans, and humans change with money.
Why should I know?

Have a good sleep.

Mystic386 · Mar 29, 2012

I have two concerns with the share vesting arrangements that we see at Apple;

1/ How come Jony doesn't see to get allocated parcels from what's reported.

2/ I notice that when they set these things up they always bind the managers to the same date. So effectively a bunch of top executives come on the free market on the same date. That seems a strategic error. They should IMHO be bound for different dates in Apples best interests.

Other than that good on them. It's a nice amount of money to have, use and enjoy.

Apple Execs Cook, Schiller, and Oppenheimer Sell Millions in Shares as RSUs from 2008 Vest

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