Tim Cook and Eddy Cue Receive Thousands of Shares of Apple Stock, Cue Nets Over $12M

[xmaseve]

So happy for Tim...

in the meantime, nothing for Apple Store specialists working their a$$ off....

Nothing, other than being employed that is. Apparently having a job is not enough now? If they want to make more money, then it's good they are working their butts off...it's called working up the ladder. I'm sure Apple Specialists after working a pre-determined amount of time have options to purchase stock at a discount via employee purchase.

 

[Rocketman]

Cook had 38,028 shares of stock withheld for tax purposes, while the remaining 34,849 shares -- worth nearly $19.5 million -- he will continue to hold.

Senior Vice President Eddy Cue vested 50,000 shares with roughly half withheld for taxes and the other half sold for a net gain of roughly $12.4 million.

My takeaway is the government receives almost as much passive income from these people's labors as they they receive for performing the work. Must be nice.

Rocketman

 

[jlgolson]

My takeaway is the government receives almost as much passive income from these people's labors as they they receive for performing the work. Must be nice.

Rocketman

RSUs are treated as normal income for tax purposes, meaning the Federal tax rate for unmarried single folks (Tim Cook) is 39.6 percent, plus California's top level income tax rate of 10.3 percent.

49.9 percent -- more or less -- goes to taxes off the top.

 

[blitzer09x87]

yeah, that's right, make your juniors work like donkeys and then take the credit. good job!

 

[xmaseve]

yeah, that's right, make your juniors work like donkeys and then take the credit. good job!

What do you mean by "juniors" and "work like donkeys" ???? Are you upset that retail store employees don't make as much as high level executives or something?

 

[Rocketman]

RSUs are treated as normal income for tax purposes, meaning the Federal tax rate for unmarried single folks (Tim Cook) is 39.6 percent, plus California's top level income tax rate of 10.3 percent.

49.9 percent -- more or less -- goes to taxes off the top.

Yes. But that is a policy decision. I claim it is wrong. Most "flat tax" proposals reduce that to 15-26%. That is only required because most of what should be done by health and welfare firms is done by health and welfare government agencies with substantially politically managed methods.

That said. Half for the government, half for the worker. Even a socialist leaning person might agree that does not pass the smell test.

In any case it got my attention. I noticed it.

 

[palmharbor]

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Two Apple executives received vested restricted stock units (RSU) last week, according to documents filed with the SEC. Apple CEO Tim Cook received 72,877 shares of Apple stock as part of the RSU award from when he was promoted to CEO two years ago. However, earlier this year Apple's board decided to modify the award to be more performance based and this vesting was part of that process.

Cook had 38,028 shares of stock withheld for tax purposes, while the remaining 34,849 shares -- worth nearly $19.5 million -- he will continue to hold.

Senior Vice President Eddy Cue vested 50,000 shares with roughly half withheld for taxes and the other half sold for a net gain of roughly $12.4 million.

The RSU award is part of the 100,000 shares Cue received as a bonus when he was promoted to Senior Vice President of Internet Software and Services in 2011. Half of those shares vested on August 24, 2013 while the second half will vest two years later in 2015 if Cue is still with the company.

After the vesting, Tim Cook holds 87,316 shares of Apple stock worth more than $43 million at current prices. As of last winter, senior Apple executives and board members are required to hold multiples of their base salary in Apple stock. The company decided to implement that requirement to satisfy the concerns of some large institutional Apple stockholders including CALPERS, the California Public Employees' Retirement System.

A prior version of this article incorrectly stated that Tim Cook and Eddy Cue exercised stock options rather than receiving shares via vesting RSUs.

Article Link: Tim Cook and Eddy Cue Receive Thousands of Shares of Apple Stock, Cue Nets Over $12M

All of these corporate executives get most of their compensation in stock.
this way they totally AVOID income tax, SS Tax,Medicare Tax, State Income tax...when they sell the stock...they pay ONLY a small capital gains tax.
This is based on the concept that the poor and middle class don't pay enough in Taxes and the wealthy should be able to avoid most taxes.

 

[jlgolson]

All of these corporate executives get most of their compensation in stock.
this way they totally AVOID income tax, SS Tax,Medicare Tax, State Income tax...when they sell the stock...they pay ONLY a small capital gains tax.
This is based on the concept that the poor and middle class don't pay enough in Taxes and the wealthy should be able to avoid most taxes.

That's completely inaccurate. RSU grants are treated as standard income for tax purposes. As posted above, all these guys pay 35-39.6% of income in federal tax and 10% in California state income tax.

They do avoid social security and Medicare because both of those are limited to only a certain amount of income.

 

[blitzer09x87]

What do you mean by "juniors" and "work like donkeys" ???? Are you upset that retail store employees don't make as much as high level executives or something?

i mean, that your juniors are doing all the hardwork and you are there just to take the credit.