Apple Executives Cash in Over 1 Million Shares of Apple Stock

MacRumors

macrumors bot
Original poster
Apr 12, 2001
49,615
10,912
https://www.macrumors.com/images/macrumorsthreadlogodarkd.png




In a series of filings with the U.S. Securities and Exchange Commission yesterday, Apple revealed that a number of its senior executives have cashed in on over a million shares of Apple stock as shares granted to them over four years ago became fully vested. Fortune offers a summary of the transactions:
More than a million restricted shares of Apple (AAPL) stock that seven of them were granted on Dec. 14, 2005 became fully vested Wednesday. The next day, with Apple opening at an all-time record high, four of them sold off all those shares pursuant, as the SEC Form 4 has it, to a Rule 10b5-1 trading plan.
The SEC maintains strict regulations regarding insider trading, requiring those shareholders with access to nonpublic information that could materially affect a company's stock price to fully disclose their trading to the SEC and take other steps such as scheduling trades in advance in order to limit the ability of such shareholders to take advantage of other traders. The vesting of stock grants that occurred this week also created tax liabilities for the executives involved, requiring them to cash in at least some of their holdings to cover those costs.

Chief Operating Officer Tim Cook took home the biggest payday yesterday, selling 300,000 shares of stock for a total of $68.8 million. $32 million of that amount was set aside for taxes. Chief Financial Officer Peter Oppenheimer and Senior Vice President of Retail Ron Johnson each turned in 200,000 shares to the tune of nearly $46 million apiece, and Senior Vice President of Worldwide Product Marketing Phil Schiller cashed in 150,000 shares for nearly $35 million.

Senior Vice Presidents Bertrand Serlet (Software Engineering), Scott Forstall (iPhone Software), and Bob Mansfield (Mac Hardware Engineering) also cashed in on their stock grants, but only in sufficient quantities to cover their tax obligations.

Article Link: Apple Executives Cash in Over 1 Million Shares of Apple Stock
 

Digitalclips

macrumors 65816
Mar 16, 2006
1,467
31
Sarasota, Florida
Those numbers are simply staggering to me. But well earned, considering the value these folks have added to Apple's bottom line over those years.
Agreed. Makes a change from these sorts of numbers for folks who didn't earn it. AAPL just passed 230 again! Were is that guy who argued with me last year we would not get over 200 for years? :p
 

GeekLawyer

macrumors 68020
That's why Tim is smiling in that picture there. He's counting his cash in his mind.
I'm so glad that the rumors that Cook might go to GM were baseless. When I look at the current leadership team at Apple, I think Cook is a natural successor to Jobs. Hopefully they'll sit him on the Board soon. I notice his wikipedia entry lists him as a "confirmed bachelor." Interesting.
 

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
Really?

Because this is that whole free-market, capitalist, every-man-for-himself right-wing paradise hard at work.

Can't complain.
 

Sreda

macrumors member
Mar 26, 2010
30
1
Sell all your apple stock now! It's the highest it will go!
They dont have enough ipads!
 

Simgar988

macrumors 65816
Jul 22, 2009
1,084
7
UYBAATC
Really?

Because this is that whole free-market, capitalist, every-man-for-himself right-wing paradise hard at work.

Can't complain.
the freedom to achieve to his greatest potential due to the hardworking, modivated and determinated spirit he found within himself. That used to be the American dream at least.

Freedom > free stuff
 

Schizoid

macrumors 6502a
May 29, 2008
814
405
UK
if there's a senior vice president in charge of Xserves and Server software with any luck they've taken all his shares off him and shot him.
 

sockdoggy

macrumors regular
Jan 21, 2002
165
54
Brooklyn
the freedom to achieve to his greatest potential due to the hardworking, modivated and determinated spirit he found within himself. That used to be the American dream at least.

Freedom > free stuff
This is why I will be applying for an Apple corporate position!
 

broncopde

macrumors 6502
May 12, 2007
260
0
Conway, AR
Wow

Wow. Pretty staggering. Not so crazy when you start thinking about it (and remembering when Jobs was talking about how Apple is a $50 billion company now), but still...
 

coasterswim

macrumors 6502
Dec 4, 2008
344
0
Long-term capital gains tax (which these stocks fall under) in the US right now is only 15%. Not sure why so much was set aside for taxes.
 

aine

macrumors newbie
Jan 24, 2007
23
6
So sad.

... so sad.
Note it only says "set aside" for taxes - this is merely a requirement of exercising stock options, even for the little guys. When Apri 15, 2011, comes around, they were surely recoup some or all of this when they file their return.
 

Little Endian

macrumors 6502a
Apr 9, 2003
678
31
Honolulu
yikes!! this really makes me doubt that AAPL will break the $300-400 point within the next 2-4 years. I guess the ipad is as good as it gets in the foreseeable future, or this shows how much faith they have in the stock market. hmm..... should I sell or should I hold? Albeit its important to put this hype into perspective as 1 million shares or $230 million of AAPL stock being dumped is about 1/100th of Apple's market cap. If I were Schiller or Cook I would probably sell as it's hard to resist a $35-70 million dollar pay day. (From their perspective) meh.. who cares if the stock doubles or triples or drops in like amounts as they will still be multi millionaires with a fair enough chance of joining the billionaire club.:rolleyes:
 

swingerofbirch

macrumors 68040
Those numbers are simply staggering to me. But well earned, considering the value these folks have added to Apple's bottom line over those years.
I'm not saying they're not valuable, but it isn't proportionate to the work they've done--the amount of money they've realized is proportionate to the amount of speculation the public has in Apple as a company. Apple has a very high P/E ratio, and as we've seen speculation is not always well-founded. I'm not saying it isn't in this case (although I wouldn't buy the stock at this price), but this isn't like we're talking a one to one correlation of performance to pay.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.