Apple SVP of Internet Software and Services Eddy Cue Cashes in $8.8 Million in Stock

Discussion in 'Mac Blog Discussion' started by MacRumors, Dec 4, 2012.

  1. macrumors bot


    Apr 12, 2001

    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. 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) 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 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, and he was recently put in charge 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 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
  2. macrumors 68020


    May 9, 2008
  3. macrumors regular

    Aug 2, 2011
  4. macrumors 603


    Good for him.

    You should say time for a new beamer M5;)
  5. macrumors 68020


    May 9, 2008
    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!
  6. macrumors 6502a


    Apr 18, 2010
    He's earned every penny, and good on him. That said, I wish I could "decide" to cash in $8.8 million!
  7. macrumors member

    Nov 14, 2012
    eddie and bob trying to outdo each other xmas shopping this year?

    wonder what they'll get me.
  8. macrumors 601


    Jan 11, 2012
    Pacific Coast, USA
    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.
  9. macrumors regular

    Aug 17, 2009
    I think they're protecting their investment before it's stocks fall. Two times is a big coincidence.
  10. macrumors 604

    Sep 17, 2009
    Melbourne, Australia
  11. macrumors regular

    Mar 20, 2012
    I have been informed that a beamer (or beemer) is a BMW motorcycle; a BMW with four wheels is a bimmer.
  12. macrumors 6502a

    Mar 27, 2011
    Harrisburg, PA
    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.
  13. macrumors 604

    Sep 17, 2009
    Melbourne, Australia
    ...Trying to outdo each other for the secret santa at the Apple employee XMAS party!
  14. macrumors 603


    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.

    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)
  15. macrumors 68020


    May 9, 2008
    Hah, I know :)

    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.
  16. macrumors 601


    Jan 6, 2004
    Western US
    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.
  17. macrumors 68020


    Sep 25, 2012
    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.
  18. macrumors regular


    Jul 13, 2010
  19. macrumors 603


    Aug 5, 2010
    They could also be rebalancing their portfolios at this time.
  20. macrumors newbie

    Aug 11, 2011
    I see America has closed the disparity between worker and executive compensation. Great job on the past century of work toward that goal, guys.
  21. macrumors 65816


    Mar 24, 2004
    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. ;)
  22. macrumors 6502a


    Oct 19, 2007
    ????? No, they are trying to avoid possible/likely tax in creases in a couple of weeks.
  23. macrumors 6502a

    Jun 20, 2012
    London, UK
    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;)
  24. macrumors 603


    Oct 28, 2007
    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?
  25. macrumors 65816


    Jan 23, 2006
    Where I live
    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...

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