Originally Posted by jragosta
While it's true that board members have financial obligations, they're missing the boat. Most companies have requirements that the board and senior execs hold a certain amount of the company's stock. Apple apparently does not.
Typically, when a stock vests, it is not uncommon to sell about 1/3 of it to cover tax obligations. Even in a high tax state like CA, selling half would cover the tax obligations. There is no reason why execs should be selling ALL of their stock - as Cook and Oppenheimer apparently have done. I'm not sure if the board member here sold all of his stock.
For someone in a high level position in this large of a company, requiring them to own a significant amount of shares (often 1-2 x annual salary, phased in over several years) is not the least bit unreasonable. Apple's missing the boat by not requiring it.
Cook & Oppenheimer sold ALL their AAPL stock? I'd like to see some Links in support of your statement… Prove it!
It kind of sounds "funny" that those guys, who lead, and speak for Apple, during Apple's Earnings Calls, would sell ALL their AAPL stock, according to your post, and yet, Apple, which they lead, Bought $16B of its own AAPL stock recently!
Apple Stock Buyback, Q3 2013: Apple spends $16 billion in Q3 | BGRhttp://j.mp/14jwIlx
Again, anyone can only guess why those Apple Execs Sell their AAPL shares! There are many guesses! It's possible that they will be receiving more AAPL Shares as part of their pay! But, if they need $$ now, it might make sense for them to sell AAPL! Maybe that would generate "paper loss" for them, and thus reduce their Taxes? Hey, those guys are no fools, and they know their $$ situations better than us…
Either way, it easy to simplify such Selling of AAPL by Apple's execs, and proclaim that they are "jumping the ship", because Apple is finished:)! It is also possible that Headlines like that are meant to attract more attention, which helps to sell ads, and maybe drive AAPL down, so that it's a cheaper Buy… :)!
Edited by macologist - 7/31/13 at 7:46pm
Smart, savvy investors understand that kind of stuff… The less experienced investors might get nervous and Sell, which is what some folks want…