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Apr 12, 2001
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Several readers have noted what appears to be a large stock sale by Apple's CEO Steve Jobs.

According to comments linked from DaringFireball, the opinion is that Jobs had to release the shares to pay taxes on the 10 milion shares of Apple he was issued:

More or less, Jobs just had 10 million shares vest, and he sold just enough of them to the pay the taxes on all of them. If he hadn’t sold any, he’d have had to pay about $300 million in taxes out of his pocket.

Appleinsider posts a similar report:

In order to meet his tax obligations on the 10M restricted shares, which vested this month, Jobs elected to net-share settle -- essentially allowing Apple to withhold and pay to authorities the portion of the 10M shares that would meet his tax payment requirements.

According to AppleInsider, Apple will retire these shares and will have no effect on Apple's current stock price.
 
menziep said:
i Wish i Had That Many Stocks In Apple

Know what you mean. Anyone know how much money (if any since its for tax purposes) he'll make?
 
So he was given 10M stocks as a gift from Apple, which he has had to sell to pay the tax on the gift.

So has he actually made anything out of this ?
 
samh004 said:
So he was given 10M stocks as a gift from Apple, which he has had to sell to pay the tax on the gift.

So has he actually made anything out of this ?
hes only selling enough to pay off th taxes on his stock, he still has the rest
 
Since when do you have to pay taxes on stock until you cash them in?

And the cost basis formula should have made these only a few dollars per share if any ...

Something seems weird about the tax accounting (or at least the speculation)
 
lilstewart92 said:
I wonder if SJ is a billionaire...

Don't know if you were being sarcastic or not but forbes but him at $4.4 billion :eek:

samh004 said:
So he was given 10M stocks as a gift from Apple, which he has had to sell to pay the tax on the gift.

So has he actually made anything out of this ?

Did some quick math, I know strange for a Saturday morning, the stocks were worth around $600 million, he sold $300 million to pay for the taxes (don't you just love that income tax rate) leaving him with tada $300 million. No drop in the bucket and a pretty nice year for anyone.
 
I don't see anything happening with Apple stock until August / September. This was a good time to sell. I bet 2007 will be a good year for Apple when all product lines are Rev B Intel products and production can meet demand.
 
Somehow Windows Fanboys are going to twist this into a sign of the death of apple. :Sigh:
 
SPUY767 said:
Somehow Windows Fanboys are going to twist this into a sign of the death of apple. :Sigh:

I am certainly not an MS groupie, but that thought did cross my mind--well, not the death of Apple, but the possibility of Mr. Jobs becoming less involved in the company. I'm glad this news came out to show that such a large sale of stock didn't have many other ramifications on Apple itself.

It makes me wonder who is in line to take over for Mr. Jobs, when the day finally comes...
 
It's called "Net-share settle" and SJ doesn't see a dime of it.

TheMasin9 said:
i think it was like 345mil that our buddy steve netted with that stock sale after taxes.

He only sold as much as he needed to sell to pay off the IRS's immediate demand for taxes on his 10 million restricted shares which is normal and required by law, and which came after his restricted stock vested this month. Approximately $296 million in taxes were due on the 10 million shares.

Steve Jobs doesn't see a dime of it, Apple just retires the stock and pays the IRS directly.

From AppleInsider:
"In order to meet his tax obligations on the 10M restricted shares, which vested this month, Jobs elected to net-share settle -- essentially allowing Apple to withhold and pay to authorities the portion of the 10M shares that would meet his tax payment requirements."
http://www.appleinsider.com/article.php?id=1621

From Daring Fireball:
"More or less, Jobs just had 10 million shares vest, and he sold just enough of them to the pay the taxes on all of them. If he hadn’t sold any, he’d have had to pay about $300 million in taxes out of his pocket."
http://daringfireball.net/linked/200...d-22-jobs_aapl

SEC Filing:
http://yahoo.brand.edgar-online.com/...1132&Type=HTML
 
boncellis said:
I am certainly not an MS groupie, but that thought did cross my mind--well, not the death of Apple, but the possibility of Mr. Jobs becoming less involved in the company. I'm glad this news came out to show that such a large sale of stock didn't have many other ramifications on Apple itself.

It makes me wonder who is in line to take over for Mr. Jobs, when the day finally comes...

Steve still is holding over 300 million in apple stock from this group alone. I don't know what else he has. I don't see him getting less involved when he could turn that 300+ million into many million more.
 
Dan8302 said:
Don't know if you were being sarcastic or not but forbes but him at $4.4 billion :eek:

Was this before or after the ~$3.7billion that came from the Disney/Pixar deal? He's going to JUMP up the billionaire list this year.
 
MacQuest said:
He only sold as much as he needed to sell to pay off the IRS's immediate demand for taxes on his 10 million restricted shares which is normal and required by law, and which came after his restricted stock vested this month. Approximately $296 million in taxes were due on the 10 million shares.

Steve Jobs doesn't see a dime of it, Apple just retires the stock and pays the IRS directly.

From AppleInsider:
"In order to meet his tax obligations on the 10M restricted shares, which vested this month, Jobs elected to net-share settle -- essentially allowing Apple to withhold and pay to authorities the portion of the 10M shares that would meet his tax payment requirements."
http://www.appleinsider.com/article.php?id=1621

From Daring Fireball:
"More or less, Jobs just had 10 million shares vest, and he sold just enough of them to the pay the taxes on all of them. If he hadn’t sold any, he’d have had to pay about $300 million in taxes out of his pocket."
http://daringfireball.net/linked/200...d-22-jobs_aapl

SEC Filing:
http://yahoo.brand.edgar-online.com/...1132&Type=HTML

I'm seeing this theory quoted a lot around the Mac web, but does anyone have any definite proof that it is the case? It doesn't mention anything on the sale declaration, and Apple's 10Q doesn't go into any detail either.
 
sparkleytone said:
Was this before or after the ~$3.7billion that came from the Disney/Pixar deal? He's going to JUMP up the billionaire list this year.

After. Forbes valued SJ's Pixar stock according to the price Disney agreed to purchase it at, and lumped it in to come up with the $4.4 milliard :) figure. Of course, with it being a stock swap rather than cash transaction, the value has fluctuated as Disney stock has moved.
 
Unfournuately for Steve, with his small salary, apple stock options is him primary form of compensation. Now, if you think about it, why would someone as smart and rich as jobs, keep all his money in just one company? It's always recommended not to invest a lot of money in your own company. Enron anyone? However of course, it seems that he is. For the benefit for Apple probally.
 
dynamicv said:
I'm seeing this theory quoted a lot around the Mac web, but does anyone have any definite proof that it is the case? It doesn't mention anything on the sale declaration, and Apple's 10Q doesn't go into any detail either.

The fact that, by law, the IRS requires immediate payment on vested stock options and we know that there were 10 million stocks that just vested this month, tells me that this is a simple equation:

Immediate Payment IRS Law + 10 million shares just vested = $296 million due immediately.

That's good enough for me.

However, it's interesting that you say the "Mac" web. I suppose that that is because windopes users and their blogs/websites, etc. are trying to put a smile on their faces with this "conspiracy theory" since miCrapsoft employees are crawling out of the woodwork to expose Vista and miCrapsoft management for the failures that they are:

Mini Microsoft
 
dynamicv said:
I'm seeing this theory quoted a lot around the Mac web, but does anyone have any definite proof that it is the case? It doesn't mention anything on the sale declaration, and Apple's 10Q doesn't go into any detail either.

Here's the SEC filing. Notice the green text under "Explanation of Responses."
 
WildCowboy said:
Here's the SEC filing. Notice the green text under "Explanation of Responses."

And there's the smoking gun. Thanks WildCowboy.

BTW, MacQuest, the reason I asked is because Andrew Orlowski over at The Register specifically asked me for proof when I questioned his take on it last Friday. It looks like he's amended his article now, so I obviously wasn't the only one who contacted him. As for Microsoft, I hope Ballmer stays as CEO for ever. With any luck he'll drive the company into the ground within five years :)
 
dynamicv said:
BTW, MacQuest, the reason I asked is because Andrew Orlowski over at The Register specifically asked me for proof when I questioned his take on it last Friday.

All good, "dynamicv", and thanks for questioning Andrew Orlowski's innaccurate and false alarmist reporting in his "Jobs dumps Apple stock" article to begin with. :rolleyes: But we know that there are still a lot of lowlifes who are trying to make this into something that it's not.

So for any miCrapsoft windopes luser pundits who are scared to click on that link above using Internet Exploder because their peecee might 'splode, blue screen, require a re-install for "breaking" winBlows or a re-format of the hard drive because clicking on that link just infected your system with the latest trojan/worm/virus, here is what the green text says in the SEC filing under "Explanation of Responses" that WildCowboy is pointing out:

1. Shares withheld by Registrant to satisfy minimum statutory withholding requirements on vesting of restricted stock.

Nuf said trolls? Okay then, go back to your bridges.

Or, you can read about the latest monopoly conviction against miCrapsoft [3 in less than 5 years by 3 different countries, for those keeping count]:

The KFTC found in December that Microsoft had acted in breach of anti-trust rules by tying its media service and media player to the Windows server and PC operating systems. The regulator fined Microsoft around £15m.

Of course monopolysoft's whiny b**ch stand is:

Microsoft believes the restrictions imposed by the KFTC are more extreme than those required by the European Commission in a March 2004 anti-trust ruling.

But my favorite reading as of late, is the "happy, happy, joy, joy" miCrapsoft employee blog at Mini-Microsoft.
 
MacQuest said:
But my favorite reading as of late, is the "happy, happy, joy, joy" miCrapsoft employee blog at Mini-Microsoft.

I love reading that site at the moment. It's nice to be able to enjoy something coming out of Redmond. :D
 
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