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Apple executives net $150M selling vested stock units granted in 2008

post #1 of 25
Thread Starter 
After a batch of restricted stock-based compensation vested last Saturday, three of Apple's executives sold off the shares, netting roughly $150 million after taxes.

Regulatory filings submitted to the SEC revealed the transactions, as reported by iPhoneinCanada.ca. Apple CEO Tim Cook, CFO Peter Oppenheimer, SVP Scott Forstall, SVP Phil Schiller and SVP Bob Mansfield were all reported as having vested restricted stock units on March 24.

The Cupertino, Calif., company granted the compensation in September 2008 in order to lock in its core executive team through 2012. At the time, shares of Apple stood at $105.26 and the stock grants were worth $122 million.

Cook received the largest award with a total of 200,000 shares. 93,360 of the shares were set aside to pay taxes on the award. After the remaining securities were sold off in batches, Cook netted $64 million. Earlier this month, the executive made $11 million off vested stock granted to him after he guided the company while the late Steve Jobs' was on medical leave.

After taxes, Oppenheimer made $47 million off his 150,000 shares, while Schiller netted $39 million from 120,000 shares. Cook, Oppenheimer and Schiller each had set up their trades through a Rule 10b5-1 trading plan that schedules transactions in advance to protect executives from allegations of insider trading.

Both Mansfield and Forstall did not appear to have automatically traded their vested shares, though SEC forms showed that they had surrendered the shares needed to pay taxes on their awards. Apple SVP Jonathan Ive presumably also received more than $50 million in vested stock, but the company is not required to file SEC forms for the awards because of his position.

According to an analysis by equity research firm Equilar, Apple's executives are at the top of the list for company leaders benefitting from stock compensation this quarter. Another analysis by the firm found Cook to have the highest value in vested stock options among Silicon Valley executives during the first quarter.

Last November, Apple granted six of its senior vice presidents 150,000 shares each, with half vesting in June 2013 and the second half in March 2016. Cook was awarded a million restricted shares last August for his new role as CEO. Half of the stock units will vest in 2016 and the second half will vest in 2021.

Apple announced a plan last week to repurchase $10 billion of its shares over three years. The program, which launches in fiscal 2013, is meant to offset the impact of employee equity grants and stock purchase programs.

[ View article on AppleInsider ]
post #2 of 25
It must be nice to log into your trading account and see that you have hundreds of thousands of shares of AAPL.

It makes my rather pathetic holdings in AAPL seem like a big joke.
post #3 of 25
Congrats! Well deserved

2016 is going to come fast. My first hope is that money is not a primary motivator for this group - that it is all about building the world's best products. That above everything

My second hope is that Apple is aggressively identifying and training the next leadership team

I feel pretty confident on both

Windows survivor - after a long, epic and painful struggle. Very long AAPL

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Windows survivor - after a long, epic and painful struggle. Very long AAPL

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post #4 of 25
Well done!

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #5 of 25
Hmmm...the head cheeses are selling their stock? What do these guys know that the average Joe the Plumber doesn't k now?
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #6 of 25
Quote:
Originally Posted by Macky the Macky View Post

Hmmm...the head cheeses are selling their stock? What do these guys know that the average Joe the Plumber doesn't k now?

Don't worry, they just need some cash to buy a nice easter bunny.
post #7 of 25
Quote:
Originally Posted by AppleInsider View Post


.... Cook, Oppenheimer and Schiller each had set up their trades through a Rule 10b5-1 trading plan that schedules transactions in advance to protect executives from allegations of insider trading....

Quote:
Originally Posted by Macky the Macky View Post


Hmmm...the head cheeses are selling their stock? What do these guys know that the average Joe the Plumber doesn't k now?

Why does Apple bashing and trolling make people feel so good?

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Why does Apple bashing and trolling make people feel so good?

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post #8 of 25
Quote:
Originally Posted by AppleInsider View Post

Cook received the largest award with a total of 200,000 shares. 93,360 of the shares were set aside to pay taxes on the award.

That seems too high.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #9 of 25
Quote:
Originally Posted by Macky the Macky View Post

Hmmm...the head cheeses are selling their stock? What do these guys know that the average Joe the Plumber doesn't k now?

That portfolio diversification is a good thing.
post #10 of 25
Yawn... Oh hmm guess I can buy the new cruise ship so I can go on vacation. Maybe I will invite Congress and the Senate on the cruise for spring break. Wow what a concept.
An Apple man since 1977
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An Apple man since 1977
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post #11 of 25
So what. I don't see any news here.
post #12 of 25
Quote:
Both Mansfield and Forstall did not appear to have automatically traded their vested shares, though SEC forms showed that they had surrendered the shares needed to pay taxes on their awards. Apple SVP Jonathan Ive presumably also received more than $50 million in vested stock, but the company is not required to file SEC forms for the awards because of his position.

Why would Forstall and Mansfield have to report their stock transactions but not Ive? They're all SVP's. Just curious what defines this.
post #13 of 25
That was why AAPL was trying to drop when dows is up +100 on March 26th... I was scared and wanted to sell my AAPL . But luckily I didn't.
post #14 of 25
I say these guys are worth every penny although I do not agree with all their decisions.
post #15 of 25
I'm jealous.

(Mid-2012) 15.4" MacBook Pro w/ IPS Retina Display | Quad Core i7-3720QM 2.6GHz / 3.6GHz Max. Turbo | 16GB DDR3-1600MHz RAM | 256GB Samsung 830 SSD-based NAND Flash ETA 9/5

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(Mid-2012) 15.4" MacBook Pro w/ IPS Retina Display | Quad Core i7-3720QM 2.6GHz / 3.6GHz Max. Turbo | 16GB DDR3-1600MHz RAM | 256GB Samsung 830 SSD-based NAND Flash ETA 9/5

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post #16 of 25
Quote:
Originally Posted by Macky the Macky View Post

Hmmm...the head cheeses are selling their stock? What do these guys know that the average Joe the Plumber doesn't k now?

Apple is doomed. (Must be why AAPL is up $3.50 in per-market trading, following this news. /s)

PS: Not sure that Joe the Plumber is a knowledge benchmark of any kind.
post #17 of 25
... in September 2008 ... shares of Apple stood at $105.26. By close of play yesterday they stood at 614.48 - a 583% increase.

Wow!!
post #18 of 25
Quote:
Originally Posted by AdyB View Post

... in September 2008 ... shares of Apple stood at $105.26. By close of play yesterday they stood at 614.48 - a 583% increase.

Wow!!

483%

Still pretty good.
post #19 of 25
Quote:
Originally Posted by Macky the Macky View Post

Hmmm...the head cheeses are selling their stock? What do these guys know that the average Joe the Plumber doesn't k now?

The only thing we can be sure of is that they know wha they are going to do with the cash that they have been waiting for all these years.

insiders buying stock might give us valuable information. Insiders selling tells us nothing for sure.
post #20 of 25
Hell, they need the coin just to be able to afford to live in the bay area. The craphole I grew up in near Stanford is worth $1.2m - and it's a 1500-sq-ft shack on a tiny lot that looks like it's been neglected since the 70's. A low 6-figure income is the poverty line anywhere near Silicon Valley nowadays. And I'm only slightly exaggerating.
post #21 of 25
Quote:
Originally Posted by Interdyne View Post

483%

Still pretty good.

A return of about 65% per year, compounded. Not too bad compared to buying a CD down at your local bank.

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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post #22 of 25
Quote:
Originally Posted by Macky the Macky View Post

Hmmm...the head cheeses are selling their stock? What do these guys know that the average Joe the Plumber doesn't k now?

Rats deserting a sinking ship. -slapppy

Oh, and AAPL = MSFT X 2 now. Another way put it is that AAPL went up a couple of Dells in the last month.
post #23 of 25
Quote:
Originally Posted by Macky the Macky View Post

Hmmm...the head cheeses are selling their stock? What do these guys know that the average Joe the Plumber doesn't k now?

That you when there is a run up a holding you have a lot of, take some profit.

Make sure your portfolio is diversified.
post #24 of 25
Quote:
Originally Posted by Interdyne View Post

483%

Still pretty good.

AdyB was right it is a 583% return.
post #25 of 25
Quote:
Originally Posted by Macky the Macky View Post

Hmmm...the head cheeses are selling their stock? What do these guys know that the average Joe the Plumber doesn't k now?

Exactly what I'm wondering.
Where can they get a better return on those Apple Shares, than simply holding them for a few more years.

At their salaries I'm sure they don't need the cash !
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