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Apple CEO Tim Cook Sells $131.7 Million in Apple Stock

MyopicPaideia

macrumors 68020
Mar 19, 2011
2,099
918
Sweden
The fact that he sold those rather than waiting a year is telling. He knows the stock is at what he believes to be an all time high. No one needs 131 million to live. He knows the future of Apple better than anyone. He got a lot of 'splaining to do... most boards wouldn't also an executive officer to execute such a sale.

inb4 negativity - I'm just interpreting the tarot cards. I could care less either way.
Probably already resoponded to a few times after this comment, but you do know that these were preplanned transactions loooooonng in advance in accordance with SEC guidelines, right? He didn’t decide to sell yesterday...
 
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atmenterprises

macrumors 6502
Jan 28, 2006
384
198
He had nearly $2 million worth of capital losses in 1 day, between when he received the shares on Monday and sold them on Tuesday.

He likely sold vested shares that were granted sometime in the past, so he would have turned a profit.

With RSUs, they have a vesting period before they can be exercised.
 
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dantroline

macrumors 6502
Oct 28, 2016
366
494
a huge sale of stocks like that usually means a bad thing is going to happen....who knows
Not always, but it sometimes is a sell signal especially if other insiders are selling. This could be a blow off top for AAPL but somehow I doubt it. The move away from Intel to another chip manufacturer, if well calculated, will grow the company massively.
 
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Carnegie

macrumors 6502a
May 24, 2012
748
1,774
He likely sold vested shares that were granted sometime in the past, so he would have turned a profit.

With RSUs, they have a vesting period before they can be exercised.

These are shares which just vested, so he doesn’t need to wait any longer to dispose of them.

He’s likely using last-in, first-out for share sales rather than first-in, first-out. That would allow him to avoid greater capital gains taxes for now and perhaps, if he does end up donating a large portion of his wealth, avoid a great deal of capital gains altogether.
 
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atmenterprises

macrumors 6502
Jan 28, 2006
384
198
These are shares which just vested, so he doesn’t need to wait any longer to dispose of them.

He’s likely using last-in, first-out for share sales rather than first-in, first-out. That would allow him to avoid greater capital gains taxes for now and perhaps, if he does end up donating a large portion of his wealth, avoid a great deal of capital gains altogether.

Right, but even a FIFO strategy means he's not taking a capital loss. Even if those RSUs have a vesting period of six months, he's still turning a gain.
 
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Carnegie

macrumors 6502a
May 24, 2012
748
1,774
Right, but even a FIFO strategy means he's not taking a capital loss. Even if those RSUs have a vesting period of six months, he's still turning a gain.

It's a capital loss because the value of the shares decreased between the time they vested and the time he sold them. For tax purposes his cost basis for those shares is their value at the time they vested ($503.43 per share), not their value at the time the RSU award was granted. He owes ordinary income tax on their value when they vest (whether he sells them or not) and then from there changes in their value become capital gains or losses when he sells them.
 
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atmenterprises

macrumors 6502
Jan 28, 2006
384
198
It's a capital loss because the value of the shares decreased between the time they vested and the time he sold them. For tax purposes his cost basis for those shares is their value at the time they vested ($503.43 per share), not their value at the time the RSU award was granted. He owes ordinary income tax on their value when they vest (whether he sells them or not) and then from there changes in their value become capital gains or losses when he sells them.

Then I stand corrected. Thank you for the education!
 
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grobik

macrumors regular
Mar 4, 2006
152
164
Dang. When I was there we got 3 shares per year. A bit paltry. And it did equate to one share after taxes if you sold it. But I guess it was better than a t-shirt.
 
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Big Ron

macrumors 6502
Dec 7, 2012
388
86
United Kingdom
there comes a point where more dollars stuffed into the piggybank become meaningless. TC passed that threshold many many years ago. He could be awarded 500 billon bucks and it wouldn't change his life one spec
Except he could give 500 billion bucks away and do some good...so it would change his life.
 
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dumastudetto

macrumors 68040
Aug 28, 2013
3,532
4,410
Tim has worked wonders for shareholders since he took over from Steve. Nobody who has a vested interest in APPL is going to begrudge him his payouts. Consumers should be delighted too since the company has never been in better shape, and all the products and experiences are better than ever.

In summary: everyone wins.
 
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newyorksole

macrumors 601
Apr 2, 2008
4,201
4,719
New York.
Dang. When I was there we got 3 shares per year. A bit paltry. And it did equate to one share after taxes if you sold it. But I guess it was better than a t-shirt.

Yeah but that 3 shares a year was more like 9 shares because we were started getting RSUs annually since like 2014/2015. So in like 2017 or 2018 I got a nice batch and 2019 as well.

That plus the ESPP... If you were at Apple for like 3-5 years+ and invested 10% every check... You’d have a lottt or money right now.
 
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bryce13950

macrumors member
Jun 13, 2016
74
102
The fact that he sold those rather than waiting a year is telling. He knows the stock is at what he believes to be an all time high. No one needs 131 million to live. He knows the future of Apple better than anyone. He got a lot of 'splaining to do... most boards wouldn't also an executive officer to execute such a sale.

inb4 negativity - I'm just interpreting the tarot cards. I could care less either way.
Do you have any idea how many hurdles a CEO has to go through to sell shares of a company they run? This was not a surprise to the board of directors. The board of directors have to approve something like this long before the FTC is even notified. This was at most only 10% of his apple shares. He's probably just diversifying his portfolio.
 
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Damian83

macrumors regular
Jul 20, 2011
143
15
Consumers should be delighted too since the company has never been in better shape, and all the products and experiences are better than ever.

In summary: everyone wins.

I really hope (for you) you're ironic. Otherwise you need a good psychiatrist
 
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Carnegie

macrumors 6502a
May 24, 2012
748
1,774
I highly doubt he cares

Yeah, I doubt he’s all that upset about it. He’s already voluntarily declined about $78 million worth of dividend equivalents which he was entitled to based on his RSU awards. He doesn’t seem like someone who’s focused on accumulating as much money as possible.
 
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