Apple Executives Receive Stock Worth Over $19 Million Each as RSUs Awarded in 2014 Vest

Discussion in 'Mac Blog Discussion' started by MacRumors, Oct 3, 2017.

  1. Chicane-UK macrumors 6502

    Apr 26, 2008
    To be fair to Gruber, who else gets that kind of access to Apple senior management? For enthusiasts it's pretty cool getting to hear him talk to Federighi and Schiller reasonably informally and hearing cool "behind the black curtain" type stories.
  2. 576316 macrumors 601

    May 19, 2011
    ...and look how white and (mostly) male they all are! Isn't all of this just great!
  3. jadot macrumors 6502


    Apr 6, 2010
    Wow. That's a lot of money. These stories are so abstract to me. Flippant arbitrary numbers. Life changing numbers are every day to some. I'm just trying to put enough food on the table. A tiny fraction of one of these awards would solve all of my financial problems. I can't help but feel a bit jealous of these people. I'm happy for them, but wonder what all of my hard work is for sometimes, and looking at the world at large - devastating hurricane damage, abysmal out of date gun laws, racism in office and on the ground, and x amount of hardships, it's hard to understand what benefit there is in learning that a handful of people have made a lot of money. Seeing their happy faces, as nice as they are, isn't making my day better, and I'm doubtful that it's particularly great PR for Apple who are seeming more and more out of touch with and out of reach from most people.
  4. NBAasDOGG macrumors 6502


    May 27, 2017
    Ivy is British, he needs toothpaste not money :D
  5. Kabeyun macrumors 68020


    Mar 27, 2004
    Eastern USA
    Good comments, but the part I italicized isn’t quite right. You only incur capital gains (or losses) upon sale of shares, not as their value fluctuates while you hold them. Until sale, you only have potential capital gains (or losses).
  6. Blackstick macrumors 6502a


    Aug 11, 2014
    Sunny South Florida
    Grossly overpaid executives, like at most companies. The real work is done by engineers and their line managers moving things forward... who make decent salaries, but NOTHING like this.
  7. Carnegie macrumors 6502a

    May 24, 2012
    The bargain element of an NSO transaction is also taxed as ordinary income. You're correct, however, in that the bargain element of an ISO transaction can be treated as a capital gain rather than ordinary income, but only if certain conditions are met. And there's an annual cap of $100,000 on the value of ISO shares which can become exercisable each year.

    Recipients of RSUs generally do lose something in the bargain, if by that you mean have to pay taxes on them. For other forms of compensation we could think of them in the same way you are suggesting here - that the employer is just adding more to the compensation it would otherwise give the employee in order to cover the taxes they will owe on that compensation. Regardless, if $20 million is what an employee receives through vesting RSUs, that $20 million represents taxable (ordinary) income just as it would if it had been paid in cash. When Mr. Cook, e.g., has RSUs vest, governments (in the aggregate) receive more in withholding payments than he does in stock value.
    --- Post Merged, Oct 4, 2017 ---
    Thank you.

    And certainly you only owe taxes on capital gains when you realize them, generally speaking at least. But I think that goes without saying.

    I think what I said is still correct. Those gains or losses are treated as capital gains or losses - realized or not. Just as with other stock holdings, they represent unrealized capital gains or losses even before they are sold. But capital gains aren't generally taxed until they are realized.
  8. laz232 macrumors 6502

    Feb 4, 2016
    At a café near you
    Exactly - I'm not jealous of the money - but there is no way that these people are "worth" a compensation they receive in any objective sense.
    There are only 24 hours in a day - and these people are not working 100-1000x times harder than their engineers, or even their cleaning staff.
    I'm part of a small team that had a satellite payload launch this year - our manager works hard - but he doesn't work orders of magnitude more than the rest of the *team*, (s)he gets maybe a 2x compensation compared to us and that's well within the bounds of reasonableness.

    That the American public has come to believe that salary is reflection of a person's ability and actual value to society* and that winners of the salary lottery are somehow - because the market is always right - justified, is a prime contributor to the political and social chasm that has recently been highlighted in the USA.

    *one can know the price of things and not their value

  9. monaarts macrumors 65816

    Jan 16, 2010
    Kennesaw, GA
    But RSU is taxed at ordinary income tax rates... meaning, if they’re income has crossed the ~$450k mark with or without RSU they’re subject to 39.6% withholding.
    --- Post Merged, Oct 4, 2017 ---
    Maybe they’re the best fit for the roles!? Should females and minorities be added just for the sake of helping these groups ‘catch-up’?

    Also remember, white males make up a 31% of the population while black males make up 6% of the population... 33% of white males have a bachelor degree while only 22% of black males do. So effectively out of every 100 people in the US who have a bachelors degree (usually a requirement to grow at most corporations) 32 are white males and 1 is a black male... just following that pattern should expect to see 1 black male for every 32 white males. Won’t you look at that!? They have a black female VP!

    Rant over.
  10. nvmls, Oct 4, 2017
    Last edited by a moderator: Oct 4, 2017

    nvmls macrumors 6502a


    Mar 31, 2011
    Sounds like you are living it.
  11. oldapplessour macrumors newbie

    Oct 4, 2017
    --- Post Merged, Oct 4, 2017 ---
    Behind that black curtain is an ever growing list of muppets holding it up in sheer desperation that it doesn't fall down and expose what this company has become = Another Puppet company who will be traded to death by the masters of deception, who use social injustice and human vanity as their smoke screen to deliver 5% more of things you don't need and will do so until the sun sets on its carbon neutral house of hot air and our courage to think independently and act with integrity outweigh our material wants
  12. Rocketman macrumors 603


    Think of it this way. The governments (federal, state, local) got about as much as the people did for the work they solely did.
  13. jonnysods macrumors 603


    Sep 20, 2006
    There & Back Again
    "refreshen ya drinks guv'na?" (please tell me you were a Simpsons fan.
  14. 78Bandit, Oct 4, 2017
    Last edited: Oct 4, 2017

    78Bandit macrumors 6502a


    Jun 13, 2009
    Nobody is worth the kind of money those people are getting. I've got nothing against a founder taking their original developmental investment in a company and riding it as high as it will go. The problem with American corporate compensation is once a company gets big enough it is easy to funnel a large portion of future growth by existing stock owners to a select few people in management positions through restricted stock units.

    With Apple worth over $700 billion dollars and having grown over the last decade at a really good rate, it doesn't take much financial finagling to transfer a substantial amount to top executives through RSUs. To put in in perspective, the eight people named here got a total of $152 million in RSUs but each share of Apple stock only took a 3 cent hit. That is pretty much a rounding error in a company like Apple. When you've got control of over $700 billion in value spread over almost 5 billion individual shares it doesn't take much to reward yourself handsomely while having minimal individual impact.
  15. alfonsog macrumors 6502


    Jul 17, 2002
    Cape Coral, FL
    Apple is going to be the first trillion dollar company. It is not a monopoly, yet outperforms monopolies. The executives are important because at that level they’re creating the corporate culture. Apple still does things the way they want, they don’t care when a bunch of tech geeks on macrumors say their products are crap because they are looking at margins and sales. Steve Jobs: Apple I 666.66 because it cost 222.22 in parts, rare if any discounts, look and feel are important... other companies make no margin just to gain market share. They’re doing something right for the general public.

    Now the solution to income inequality where the top paid exec now makes 10000 times the least paid employee is simple. Just go back to the republican tax plan when Eisenhower was president.
  16. melendezest Suspended

    Jan 28, 2010
    I'm thinking there should be caps on how much money these people can make.

    I mean, it gets to a point where their money can make a LOT of money sitting in an account somewhere, so anything past the caps should be distributed to the shareholders and employees equally.

    But, hey, I'll be labeled a commie for saying that. Fine by me.
  17. Angrydad macrumors newbie


    Oct 4, 2017
    Rocky Mountains
    --- Post Merged, Oct 4, 2017 ---
    It must be nice to have money to live on when you have employees on the retail side that live pay check to pay check because Apple won’t help with cost of living increases.sad sad sad
  18. groove-agent macrumors 65816


    Jan 13, 2006
    Starve Apple fanboys with no refreshes long enough, they’ll buy anything no matter what the price is. Now THAT’S “magical”!
  19. Z400Racer37 macrumors 6502a

    Feb 7, 2011
    lol it's a nice little condensed version of the victimhood politics in this country. Can't stand those people. Its so much easier to blame everyone else for your problems, and sneer at their success though.

    Who makes the organization and integration of all the relevant skill sets of the people in those teams possible?
  20. fairuz macrumors 68020


    Aug 27, 2017
    Silicon Valley
    Pretty sure execs could do the engineers' jobs instead if they really wanted to. Lots of execs start as engineers.
  21. 8281, Oct 4, 2017
    Last edited: Oct 4, 2017

    8281 macrumors 6502

    Dec 15, 2010
    Apple hasn't really wowed anyone lately with their products, so it's likely these stock payouts are a result of increased stock price. It's fine if you want evaluate success that way. I personally think it's shortsighted and many engineers and marketers who aren't paid this well could probably manage these products just fine. Executive compensation at large companies is often more about politics than it is about the true performance of the organization.
  22. 69650 Suspended


    Mar 23, 2006
    I have no problem with rewarding excellence but that’s not the case here. Not one of these VPs are responsible for the share price increase. Not one of them is responsible for the iPhone sales increase.

    They are however responsible for constant product delays, supply problems, manufactring problems, poor quality and buggy software, etc.

    Steve Jobs and Jony Ive are responsible for Apple’s current position. They started the unstopable juggernaut that is the iPhone and all the current VPs are simply surfing that wave and wrongly taking the credit for it.
  23. Carnegie macrumors 6502a

    May 24, 2012
    Ms. Ahrendts sold nearly $10 million worth of AAPL shares from Tuesday to Thursday and Mr. Schiller sold nearly $9 million worth on Tuesday.
  24. Technarchy macrumors 604


    May 21, 2012
    Success should be rewarded. However I would rather Apple innovate and sell great products for success rather than rely on nickel and diming, and cheap money grabs...

    Example: selling a new iPhone that can’t connect to a new MacBook without a dongle. That’s just pathetic.
  25. MacManiac1 macrumors regular


    Sep 7, 2017
    Ms. Ahrendts got hired at the right time didn’t she!

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