Eddy Cue Receives Another 100,000 Shares of Apple Stock

[MacRumors]

As revealed in a new filing with the U.S. Securities and Exchange Commission, Apple has awarded Eddy Cue an additional 100,000 shares of company stock in the form of restricted stock units. The stock units were issued on November 2nd and will vest in September 2014 (25,000 shares) and September 2016 (75,000 shares) if Cue remains employed by Apple at those milestone dates.

At Apple's present stock price, the stock would be worth $40 million, although the final value will be determined as of the dates that the different portions vest.

This is the second such grant Cue has received since being promoted to senior vice president for Internet software and services two months ago. The first batch of 100,000 restricted stock units was awarded on September 2nd following his promotion, and those units will vest in two equal portions in August 2013 and August 2015. Cue also holds a number of other restricted stock units that he had been awarded prior to his promotion.

Cue has been at Apple for 22 years, and played an integral role overseeing the iTunes Store and App Store. His role has significantly expanded over the past year or so, adding oversight of Apple's iCloud service and iBookstore. Just this past August, Cue also took over leadership of the iAd program following the departure of Andy Miller.

Article Link: Eddy Cue Receives Another 100,000 Shares of Apple Stock

 

[rdowns]

Nice. Good to see Apple making sure key people stick around. My AAPL stock is very thankful.

This is a guy an Apple fan should be concerned about losing, not some security hack who has no bearing on the products Apple produces.

 

[stridemat]

Nice. Good to see Apple making sure key people stick around. My AAPL stock is very thankful.

This is a guy an Apple fan should be concerned about losing, not some security hack who has no bearing on the products Apple produces.

Agree with that. These are the people who get the good ideas moving.

 

[andreiru]

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Apple pays management well while a minimum wage to the store staff & the manufacturers, it appears...

 

[macinnv]

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Apple pays management well while a minimum wage to the store staff & the manufacturers, it appears...

The pay gap between store employees and executive management must be massive!

 

[Macwheezie]

Seriously?

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Apple pays management well while a minimum wage to the store staff & the manufacturers, it appears...

In this case, it's the 1% that make the insanely great products...so pay the man!

 

[longofest]

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I know for some options, you only get the difference between the company's value now and later. So, say u get 1 option and the price is 400 now and goes up to 425 at vesting time, u get 25 dollars, not 425. If its negative u obviously dont have to pay...

 

[Anaemik]

I would have hoped that somebody getting his 2nd $40M windfall in <3 months would be doing an awesome job of things like not screwing up the iCloud rollout, not breaking MobileMe for days at a time, and allowing users to merge Apple IDs. Obviously I live in some kind of dream world.

 

[firestarter]

Apple pays management well while a minimum wage to the store staff & the manufacturers, it appears...

How much education and brainpower does it take to scan my credit card when I walk in to buy an iPod?

 

[TwinCities Dan]

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Apple pays management well while a minimum wage to the store staff & the manufacturers, it appears...

"Occupy Apple"

 

[hobo.hopkins]

"Occupy Apple"

Unfortunately this thread will fill up with people saying just that. Although this is an insane amount of money, Apple is ensuring that their best executives stay at Apple. This is good for Eddy Cue, but also for Apple and its consumers.

 

[darster]

There are leaders and followers in the business world. The leaders are in the top 1% because only a few can really lead succesfully, while the other 99% can not. Leaders who fail will always be remembered and scorned. Followers who fail, are fired and forgotten.

 

[barkomatic]

No one is worth that much money. I believe in people getting compensated based upon what they've accomplished --but those amounts going to individuals is completely irrational.

 

[hobo.hopkins]

No one is worth that much money. I believe in people getting compensated based upon what they've accomplished --but those amounts going to individuals is completely irrational.

It's not irrational. He makes Apple more money than that, so it's perfectly rational. You might disagree with it out of principle, but it not irrational.

 

[PowderPC]

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I know for some options, you only get the difference between the company's value now and later. So, say u get 1 option and the price is 400 now and goes up to 425 at vesting time, u get 25 dollars, not 425. If its negative u obviously dont have to pay...

These aren't options...they're outright grants, albeit with vesting restrictions.

 

[AppleWarMachine]

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Haters gonna hate...don't be jealous

 

[barkomatic]

It's not irrational. He makes Apple more money than that, so it's perfectly rational. You might disagree with it out of principle, but it not irrational.

No, Steve Jobs made Apple money and unfortunately he's gone now. These guys will leave Apple shortly after they are fully vested.

Hey, its not like Apple is different in this regard than any other corporation -- but publicizing someone getting a 40 million dollar bonus is hard for the average unemployed Joe to understand -- and underscores the tragic gulf between the ridiculously rich and the majority who are struggling.

 

[fabian9]

No, Steve Jobs made Apple money and unfortunately he's gone now. These guys will leave Apple shortly after they are fully vested.

Hey, its not like Apple is different in this regard than any other corporation -- but publicizing someone getting a 40 million dollar bonus is hard for the average unemployed Joe to understand -- and underscores the tragic gulf between the ridiculously rich and the majority who are struggling.

He's been with apple for 22 years, in that time he's worked for a number of different CEOs and went through some of apples hardest and most successful times.

I can't imagine him leaving anytime soon!

 

[barkomatic]

He's been with apple for 22 years, in that time he's worked for a number of different CEOs and went through some of apples hardest and most successful times.

I can't imagine him leaving anytime soon!

Well this link has more details. In fact, other executives are getting 60 million dollar bonuses as well:

http://news.cnet.com/8301-27076_3-57318938-248/apple-gives-most-of-its-top-execs-$60m-bonuses/?tag=TOCmoreStories.0

I'm not saying these guys don't provide a great deal of value to Apple--they do and deserve to be rewarded. I have a problem with obscene amounts of money being paid to *individuals*. 60 million? That's the yearly operating budget of many struggling public universities. We distribute our resources foolishly and we will pay the price someday.

 

[TwinCities Dan]

I'm not saying these guys don't provide a great deal of value to Apple--they do and deserve to be rewarded. I have a problem with obscene amounts of money being paid to *individuals*. 60 million? That's the yearly operating budget of many struggling public universities. We distribute our resources foolishly and we will pay the price someday.

But it's okay to pay guys that much to play sports, act in movies, or make music? Hard work deserves success, why is that bad?

 

[fabian9]

Well this link has more details. In fact, other executives are getting 60 million dollar bonuses as well:

http://news.cnet.com/8301-27076_3-57318938-248/apple-gives-most-of-its-top-execs-$60m-bonuses/?tag=TOCmoreStories.0

I'm not saying these guys don't provide a great deal of value to Apple--they do and deserve to be rewarded. I have a problem with obscene amounts of money being paid to *individuals*. 60 million? That's the yearly operating budget of many struggling public universities. We distribute our resources foolishly and we will pay the price someday.

One thing to also bear in mind is that these are stock options only. They may be worth 40 million now, but by 2014/15/16, depending on the companys performance, they may be worth nothing at all. The company's performance is of course very much dependent on how these individuals perform and how well they lead their respective teams.

I'm not agreeing or disagreeing with the amounts of money that they're likely to get out of this, but companies have to keep their employees interested. For some of us, a small raise every year may be sufficient to keep us motivated, whereas for others huge stock options are necessary... It's the way of the world I'm afraid, people have different perspectives as to what they consider an appropriate motivator to keep doing a good job rather than looking for alternative employers.

 

[barkomatic]

But it's okay to pay guys that much to play sports, act in movies, or make music? Hard work deserves success, why is that bad?

It's NOT ok to pay a $60 million dollar bonus to a baseball player either in my opinion--but that is not the topic at hand. In my perspective, a talented baseball player is no more talented than a skilled teacher.

 

[aristobrat]

Apple pays management well while a minimum wage to the store staff

My experience, having worked as store staff for Apple (US), was that the hourly wage for "entry level" part-time positions was greater than some retailers (in the same mall) paid their "managers".

And that didn't include the other perks that Apple Store gave all of its employees, like free monthly pre-paid parking passes, etc. Most other retailers told their employees that "parking is factored into your hourly rate", leaving them to spend $100+/month out of their pocket to purchase a parking pass.

 

[TwinCities Dan]

It's NOT ok to pay a $60 million dollar bonus to a baseball player either in my opinion--but that is not the topic at hand. In my perspective, a talented baseball player is no more talented than a skilled teacher.

Or a talented sandwich artist?

I'm sorry, while I agree that may be ALOT of money, I do feel they deserve it. They earned it. They have billions and billions of dollars and chose to distribute a very small percentage of that profit to some of the people that created it.

Is it wrong for a farmer to keep a couple ears of corn to themselves after harvesting the entire field?

 

[firestarter]

Well this link has more details. In fact, other executives are getting 60 million dollar bonuses as well:

http://news.cnet.com/8301-27076_3-57318938-248/apple-gives-most-of-its-top-execs-$60m-bonuses/?tag=TOCmoreStories.0

I'm not saying these guys don't provide a great deal of value to Apple--they do and deserve to be rewarded. I have a problem with obscene amounts of money being paid to *individuals*. 60 million? That's the yearly operating budget of many struggling public universities. We distribute our resources foolishly and we will pay the price someday.

There's another way to look at this... and it's potentially an indication that Tim Cook feels his senior execs are currently at risk of leaving, following Jobs' death.

These aren't bonuses for work done - they're 'golden handcuffs' to stop them from leaving for 2 years (they all seem to vest in mid 2013).

For a bunch of rich guys who were highly motivated by Jobs presence, I would have expected a few to leave pretty quickly. Apple is great 'n' all, but if you take away Jobs' charisma, it's just a job - and there are plenty of other exciting challenges in the valley.

Depending on how you see things, this is good news, because it buys stability for the company for the next two years - or it's bad news, because it's an indication of Tim Cook's weakness as a leader and motivator that he feels this is necessary.


Edit: In my personal experience, working in companies that have a 'bonus culture' - bonus is rarely about a job well done, it's more judging a person's greed/sense of self-worth and the risk of them leaving if they feel undervalued.