Apple VP exercises stock options for $9.6M profit

AppleInsiderAppleInsider
Posted:
in General Discussion edited January 2014
With Apple's Retail strategy well on its feet and raking in cash, the company's retail chief cashes in on stock options.



Two days after Apple Computer announced its iPod Photo and U2 iPod, company Senior Vice President Ron Johnson reaped a US$9.6 million dollar profit on stock options last Thursday, as Apple's stock flirted with a new yearly high, writes The Mac Observer.



Johnson reportedly purchased the 300,000 shares of Apple stock on Oct. 28 for $18.59 and immediately dumped them at a market value of $50.5875 a share, taking home a pre-tax profit of $9,626,250.00, according to a a filing made Monday with the U.S. Securities and Exchange Commission.



Prior to heading up Apple's retail strategy, Johnson held various management positions at the Target Corporation, including Vice President of Merchandising for Target Stores.



During Apple's last fiscal year, the company's retail stores hosted 24 million visitors and generated $1.2 billion in revenues, continuing one of the greatest success stories in retail history.



Speaking at the annual conference of The Center for Design and Business in Providence, RI this April, Johnson announced that Apple's stores were the fastest retail chain to ever to reach the $1 billion sales figure (3 years), besting previous record-holder The Gap, which took 4 years to hit the same figure.

Comments

  • Reply 1 of 15
    fahlmanfahlman Posts: 740member
    So Mr. Johnson beleives that we have seen Apple's stock peak and is getting out while the getting is good?
  • Reply 2 of 15
    gorickeygorickey Posts: 9member
    Quote:

    Originally posted by fahlman

    So Mr. Johnson beleives that we have seen Apple's stock peak and is getting out while the getting is good?



    No, he's just smart is all. Even if AAPL goes up more, he did just fine obviously...
  • Reply 3 of 15
    fahlmanfahlman Posts: 740member
    Up almost $2.25 since he sold. It's at $52.80. He could have made and extra $675,000



    Edit: I was kidding. What's the difference between 9.6 and 10.2?
  • Reply 4 of 15
    denmarudenmaru Posts: 208member
    I think at this point, that´s irrelevant... :3

    Way to go, Apple.. :3
  • Reply 5 of 15
    talksense101talksense101 Posts: 1,738member
    Quote:

    Apple VP excercises stock options for $9.6 profit



    $10 profit? Fix the title.
  • Reply 6 of 15
    kickahakickaha Posts: 8,760member
    Quote:

    Originally posted by fahlman

    So Mr. Johnson beleives that we have seen Apple's stock peak and is getting out while the getting is good?



    Or he saw a house he wanted, or he had a side venture he needed to finance, or, or, or...



    There are a million reasons why he may have sold now... a perceived peak being only one of them.



    Given the advance warning that officers of the company need to give before selling though, he likely filed for this weeks or months ago.
  • Reply 7 of 15
    york2600york2600 Posts: 13member
    This happens all the time. It's really nothing new. I was looking at the data for Apple a few weeks back thinking how much money those execs pull in off insider transactions (not insider trading).



    Here's the link to see all the insider transactions.

    http://finance.yahoo.com/q/it?s=AAPL
  • Reply 8 of 15
    northgatenorthgate Posts: 4,461member
    Quote:

    Originally posted by Kickaha

    Or he saw a house he wanted, or he had a side venture he needed to finance, or, or, or...



    There are a million reasons why he may have sold now... a perceived peak being only one of them.



    Given the advance warning that officers of the company need to give before selling though, he likely filed for this weeks or months ago.



    Exactly.



    Now if I can just track him down so I he can help fund my movie!
  • Reply 9 of 15
    masonmcdmasonmcd Posts: 43member
    Quote:

    Originally posted by AppleInsider

    With Apple's Retail strategy well on its feet and raking in cash...



    Good to see you fixed this. Bleeding cash of course means *losing* money.
  • Reply 10 of 15
    eugeneeugene Posts: 8,254member
    Johnson exercised his options on the 28th. The 29th was the last trading session of the month. Perhaps he had expiring options? This news update is enitrely presumptuous.
  • Reply 11 of 15
    randycat99randycat99 Posts: 1,919member
    Anybody else here benefitting from Apples frantic pace to the sky? I'm sure regretting I didn't jump in around Jan 04. Last time I checked (which was a long while ago), they were running pretty flat, and then *blink*, not so flat.
  • Reply 12 of 15
    macdeutschemacdeutsche Posts: 4member
    Sooner or later, the stock price will go down. Right now it is too high. With one annoncement of slowed growth of ipod, the AAPL will suffer significantly.



    They have to either 1. develop an strategy to continue ipod like growth or 2. improve the mac division. None of these will not be easy.



    I am not sure whether the gain was paper gain or not, but if his company's stock will go down signficantly and he escaped with cash, then he will be the one that shareholders would be furious about. Exercising decision is not easy.
  • Reply 13 of 15
    randycat99randycat99 Posts: 1,919member
    Yes, the rise as of late does seem a bit drastic. I wouldn't trust it to stay up there for long, either.
  • Reply 14 of 15
    nijiniji Posts: 288member
    i bought at 17.65.

    i am not selling.

    it will split at 60 something.

    think different.
  • Reply 15 of 15
    randycat99randycat99 Posts: 1,919member
    Man, that's effing sweet! Don't you wish you had started that with a great big wad (the all the marbles approach)? The possibilities...
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