Apple extends restricted stock grant program to all employees
In a letter to employees on Wednesday, Apple CEO Tim Cook announced a new program that extends restricted stock unit grants to all staff members, a strategy normally employed to incentivize work performance.
While exact details were not immediately specified, the program is expected to dole out much smaller RSU packages than those received as compensation by C-level executives, including Cook himself. A vesting schedule was not provided, though current performance based RSUs handed out to top Apple leadership usually convert in yearly intervals over a five-year period.
As noted by Cook in today's memo, a copy of which was obtained by 9to5Mac, Apple has traditionally leveraged RSUs to retain talent and incentivize high performance levels from executives, upper management and key skill positions.
While exact details were not immediately specified, the program is expected to dole out much smaller RSU packages than those received as compensation by C-level executives, including Cook himself. A vesting schedule was not provided, though current performance based RSUs handed out to top Apple leadership usually convert in yearly intervals over a five-year period.
As noted by Cook in today's memo, a copy of which was obtained by 9to5Mac, Apple has traditionally leveraged RSUs to retain talent and incentivize high performance levels from executives, upper management and key skill positions.
Apple provides an Employee Stock Purchase Plan in which workers can buy shares of AAPL at discounted rates, but has never before initiated company-wide RSU grants. Most recently, Cook saw 560,000 RSUs worth $58 million vest in August for meeting mandated performance goals.This year, I'm excited to let you know that the Executive Team has created a new program for stock ownership through RSU grants. It's designed to reach employees who were not previously eligible, including many in our amazing retail and AppleCare teams.
This new program extends eligibility to everyone not covered by other RSU programs, effectively making everyone who works at Apple eligible for an RSU grant. This is an unusual step, and very special -- just like our team.
At Apple, our most important resource -- our soul -- is our people. Along with our many progressive benefit plans, this is another way for us to say thanks. On behalf of the Executive Team, I'd like to thank you for your many contributions to Apple. Working with all of you is the privilege of a lifetime.
Comments
Also, many other companies have successfully implemented such a program for employees.
I'd love it if my company did that. But I work for your typical big,boring corporation that only hands out RSUs to certain grade levels.
Some of the companies that do this include Cisco, Starbucks, and Southwest Airlines. Shake Shack hands it out to all salaried employees.
Maybe Apple will renew interest in this trend.
That's a lot of stock retired. Had no idea it was that much. Is it having the effect on stock price that was hoped?
Earnings per share are up almost 50% in the last three years, while enterprise value (stock price times number of shares) is unchanged. But who knows what the stock price would be without the buybacks! Wall Street doesn't understand Apple.
The Board.
Gr8 way to bring some of the $$ back from Ireland. Not everyone can be the boss, obviously. But since we're given such a short time on earth it makes no sense not to try and leave it a better place... I always worked harder and smarter for a piece of the pie.
Will this have something to do with Cash Buy Back Stocks? Apple could now Buy Back stocks and not to wipe it off market, instead it is stored as reserve for employee grant?
There may be a seismic shift after the 2016 presidential election...just a guess.
Earnings per share are up almost 50% in the last three years, while enterprise value (stock price times number of shares) is unchanged. But who knows what the stock price would be without the buybacks! Wall Street doesn't understand Apple.
We would probably have the same p/e ratio so obviously the price would be lower.