or Connect
AppleInsider › Forums › Investors › AAPL Investors › Apple SVP Eddy Cue sells off $12.4M of vested stock, CEO Cook withholds shares
New Posts  All Forums:Forum Nav:

Apple SVP Eddy Cue sells off $12.4M of vested stock, CEO Cook withholds shares

post #1 of 20
Thread Starter 
Filings with the U.S. Securities and Exchange Commission on Tuesday reveal Apple executives Tim Cook and Eddy Cue exercised stock options last week, though only Cue opted to sell a portion of his vested stock for a total of $12.4 million.

Cue Stock
Source: SEC


Apple's senior vice president of Internet Software and Services Eddy Cue acquired 50,000 restricted stock units last Saturday, and sold 24,580 shares at a price of $504.18 to net $12,392,700. The remaining 25,420 units were withheld at a price of $501.02 per share to satisfy the minimum statutory tax requirements on vested RSUs.

Cue's shares were part of a 100,000 unit award granted in September 2011, the second half of which is scheduled to vest in August 2014, assuming continued employment.

As for Cook, the chief executive had 72,877 RSUs converted on the same day and withheld the minimum tax requirements, which came out to 38,028 shares at $501.02, or over $19 million. He did not sell any shares in last week's transaction.

Cook still holds 87,316 common stock shares that, if sold today, would be worth nearly $42.7 million. In addition, another 840,000 RSUs are scheduled to vest in 100,000-unit chunks in 2016 and 2021. The remaining 640,000 will be split into eight annual installments of 80,000 units, the first slated to vest on Aug. 24, 2014.
post #2 of 20

Sell all stock from all execs and give it all to the developers.  See what happens.

An Apple man since 1977
Reply
An Apple man since 1977
Reply
post #3 of 20

Executives dump stocks before the product announcement? Great!

post #4 of 20
I'll bet Ive is glad he doesn't have to disclose his stock grants and sales.
post #5 of 20
Well, stock being part of a payment package is time-bombed. Receivers can't cash in before a specified date.

Cue did sell once he was allowed to, Cook didn't.

Lesson learned? Cook sees relevant revenues and profits ahead. Cue is somewhat stuck with negotiations with content providers... or simply has to settle his debt with that Chinese hooker everybody is talking about...

Whatever... not really any news here.
post #6 of 20
Quote:
Originally Posted by dreyfus2 View Post

Well, stock being part of a payment package is time-bombed. Receivers can't cash in before a specified date.

Cue did sell once he was allowed to, Cook didn't.

Lesson learned? Cook sees relevant revenues and profits ahead. Cue is somewhat stuck with negotiations with content providers... or simply has to settle his debt with that Chinese hooker everybody is talking about...

Whatever... not really any news here.

Maybe Eddie is going to MS 1smile.gif
post #7 of 20
Or maybe he just wanted some asset liquidity.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #8 of 20

If he filed an extension, taxes are due in a little over a month, perhaps with some prepayment penalties. Time to pay up, better sell some shares.

Life is too short to drink bad coffee.

Reply

Life is too short to drink bad coffee.

Reply
post #9 of 20

It's this simple… when these shares vest, you are liable for the taxes on them. If you don't have the cash on hand to cover it, it's necessary to sell off at least a portion of them to cover those taxes. Cue may have taken a bit of liquidity off the top, but he's essentially 'prepaying' the tax on the whole chunk by selling what he needs to in order to cover it. By hanging on to the rest, he's also showing that he clearly believes that stock is going to be a lot more valuable in the near future… I'm guessing he'd have preferred not to have to sell any of it.

 

In Cook's case, he may have had the cash on hand to cover the taxes, and feels that holding onto the stock is a better investment than cashing them out for a tax payment.

post #10 of 20
Quote:
Originally Posted by Suddenly Newton View Post

Or maybe he just wanted some asset liquidity.

Exactly, he needs it to buy a top of the line Mac Pro in November ... 1biggrin.gif
Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
Reply
Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
Reply
post #11 of 20
Quote:
Originally Posted by fallenjt View Post

Executives dump stocks before the product announcement? Great!

 

You're kidding, right? His stock vested on a schedule. That schedule has nothing to do with product release timing. When the stock vests, you need to pay some taxes. How do you afford that? If you have a few million $ on hand, perhaps you just cover it. Otherwise, you have to sell some of those newly vested shares to cover the tax bill. It's a common pattern in corporate executive circles: Vest -> Sell a portion roughly equal to the potential (prepaid) tax liability -> Sit on the rest.

 

Get it?

post #12 of 20
Quote:
Originally Posted by tribalogical View Post

It's this simple… when these shares vest, you are liable for the taxes on them. If you don't have the cash on hand to cover it, it's necessary to sell off at least a portion of them to cover those taxes. Cue may have taken a bit of liquidity off the top, but he's essentially 'prepaying' the tax on the whole chunk by selling what he needs to in order to cover it. By hanging on to the rest, he's also showing that he clearly believes that stock is going to be a lot more valuable in the near future… I'm guessing he'd have preferred not to have to sell any of it.

 

In Cook's case, he may have had the cash on hand to cover the taxes, and feels that holding onto the stock is a better investment than cashing them out for a tax payment.

 

Cue did not keep any. He sold half for liquidity, and the other half was withheld to submit to the IRS to cover the tax bill. The entire 50k share grant is now gone.

post #13 of 20
Quote:
Originally Posted by fallenjt View Post

Executives dump stocks before the product announcement? Great!

Sometimes, they kind of have to. If they plan on staying longer, they always get more...  Maybe Eddie wants to buy the next new Ferrari that gets produced.....  These guys don't make much off their salary.  

post #14 of 20
Quote:
Originally Posted by digitalclips View Post

Exactly, he needs it to buy a top of the line Mac Pro in November ... 1biggrin.gif

Or a Ferrari Enzo!

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #15 of 20

$12.4 million hits the streets... Maybe some of that will slosh halfway across the country to where I am... 

post #16 of 20
I wish I could become a millionaire by turning iTunes into a dung pile.
post #17 of 20
Originally Posted by graxspoo View Post
I wish I could become a millionaire by turning iTunes into a dung pile.

 

I wish I had a clue what you were talking about.

Originally Posted by asdasd

This is Appleinsider. It's all there for you but we can't do it for you.
Reply

Originally Posted by asdasd

This is Appleinsider. It's all there for you but we can't do it for you.
Reply
post #18 of 20
Quote:
Originally Posted by Tallest Skil View Post

I wish I had a clue what you were talking about.
When animals make...oh, wait...
Crying? No, I am not crying. I am sweating through my eyes.
Reply
Crying? No, I am not crying. I am sweating through my eyes.
Reply
post #19 of 20
Now I understand the tax implications, well it's probably an AAPL buying opportunity, scared off a few numpties... now theres 3% to regain in the next few days.
post #20 of 20

Or in other words, Cook is finally forced to hold some shares since he's dumped them every step of the way.  If they are using shareholder equity to buyback shares they really should be forced to hold shares for at least a year past the vesting date otherwise it really looks like they are just using the buyback to dump shares at inflated prices.

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: AAPL Investors
AppleInsider › Forums › Investors › AAPL Investors › Apple SVP Eddy Cue sells off $12.4M of vested stock, CEO Cook withholds shares