Apple's Mac and Retail bosses cash in on over $55 million in options

Posted:
in General Discussion edited January 2014
Two of Steve Jobs' top lieutenants saw big pay days during the month of October, with Apple's Mac hardware chief and retail mastermind both cashing in on stock options that combined to total of more than $55 million.



First was Bob Mansfield, who a little over a week ago exercised 40,000 stock options at a strike price of $36.54, selling them on the open market for $308 a share to net a profit of $10,858,400 before taxes and fees, according to a regulatory filing with the Securities and Exchange Commission.



Mansfield made his way to Apple following its acquisition of Raycer Graphics in 1999 and within just a few years emerged as one of the leaders of the company's then ailing Mac division. In 2008, he was subsequently promoted to Senior Vice President of Mac Hardware Engineering, becoming the first public face of Mac systems development since the rocky departure of Tim Bucher back in November of 2004.



Since then, Jobs has entrusted Mansfield with heightened responsibilities, assigning him the new role of Apple's Senior Vice President of Mac and Devices Hardware Engineering this August to cope with the abrupt exit of Mark Papermaster, who oversaw iPod and iPhone engineering for a year and change leading up to this summer's iPhone 4 "Antennagate" debacle.



Meanwhile, Apple retail 'Genius' Ron Johnson on Thursday took receipt of his third mega-million dollar payload in as many years. According to SEC filings, he exercised 150,000 options at a strike price of $11.73, selling them in multiple trades at a weighted average of $306.07 per share to clear a whopping $44,151,000 in profit before taxes.



Johnson was lured away from Target by Jobs in 2000 to spearhead the company's fledgeling retail business. He's renowned not only for crafting an international chain of 317 retail stores that are among the world's most profitable per square foot, but also for pioneering the extremely successful "Genius Bar" concept found inside those stores, in the face of initial stiff opposition from Jobs.



Almost three years ago to the date, Johnson exercised the 700,000 options at $23.72 apiece, raking in a profit of nearly $113 million after selling the shares on the market for between $185 to $185.21. He followed that up this past March by moving 200,000 options for a profit of roughly $46 million.



In years prior, Johnson also completed sales of Apple stock for profits of $9.6 million, $22.6 million, $7 million, and 8 million, bringing his combined total of stock-based compensation while at Apple to at least $250 million.



According to filings with the SEC, Johnson still holds 232,875 beneficially owned shares of Apple.
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Comments

  • Reply 1 of 54
    bageljoeybageljoey Posts: 1,734member
    Quote:
    Originally Posted by AppleInsider View Post


    Johnson was lured away from Target by Jobs in 2000 to spearhead the company's fledgeling retail business. He's renowned not only for crafting an international chain of 317 retail stores that are among the world's most profitable per square foot, but also for pioneering the extremely successful "Genius Bar" concept found inside those stores, in the face of initial stiff opposition from Jobs.



    I'm trying to think of the last time I heard of someone within Apple standing up to stiff opposition from Jobs who continued to be successful there...

    I guess it was all worth it, that's a lot of $$$.
  • Reply 2 of 54
    Exercising their right to sell their stock has nothing to do with opposing Steve, it's likely to avoid the capital gains tax increases thanks to our glorious leader in Washington... home of the anti-business mob.
  • Reply 3 of 54
    Good for them. They earned it.
  • Reply 4 of 54
    irelandireland Posts: 17,384member
    Quit dribbling, AI.
  • Reply 5 of 54
    irelandireland Posts: 17,384member
    Quote:
    Originally Posted by SpamSandwich View Post


    Exercising their right to sell their stock has nothing to do with opposing Steve, it's likely to avoid the capital gains tax increases thanks to our glorious leader in Washington... home of the anti-business mob.



    If I read the story correctly, which I likely didn't (or ever do, ha), Jobs [initially] opposed the "Genius Bar" concept Johnson spearheaded.
  • Reply 6 of 54
    bageljoeybageljoey Posts: 1,734member
    Quote:
    Originally Posted by SpamSandwich View Post


    Exercising their right to sell their stock has nothing to do with opposing Steve, it's likely to avoid the capital gains tax increases thanks to our glorious leader in Washington... home of the anti-business mob.



    Huh?

    Where did this comment come from?
  • Reply 7 of 54
    Quote:
    Originally Posted by SpamSandwich View Post


    Exercising their right to sell their stock has nothing to do with opposing Steve, it's likely to avoid the capital gains tax increases thanks to our glorious leader in Washington... home of the anti-business mob.



    Stock options are part of their remuneration package. Exercising their options is just cashing in on the fruits of their labor. AAPL is trading near all time highs, This is a good time for them to cash in. When you are at that level in a publicly traded company, the window of opportunity to cash in options is small, since they are privy to inside information that could affect the stock valuation. Hence there are only certain times in the year when they can exercise their options. Right after quarterly results is one of those times.



    Of course the possibility that capital gains tax could increase may also be a factor.
  • Reply 8 of 54
    irelandireland Posts: 17,384member
    Quote:
    Originally Posted by Bageljoey View Post


    Huh?

    Where did this comment come from?



    Brain > fingers > keyboard.
  • Reply 9 of 54
    bageljoeybageljoey Posts: 1,734member
    Quote:
    Originally Posted by Ireland View Post


    Brain > fingers > keyboard.



    Well, I agree on the last two...
  • Reply 10 of 54
    Quote:
    Originally Posted by SpamSandwich View Post


    Exercising their right to sell their stock has nothing to do with opposing Steve, it's likely to avoid the capital gains tax increases thanks to our glorious leader in Washington... home of the anti-business mob.



    So you think we we were better off under George "M" Bush?
  • Reply 11 of 54
    Let's not drive down the political alley on this one.



    Just congratulations for work very well done, and for setting a bar high enough that the rest of the (retail) world can only stand there and gasp (or drool in envy).
  • Reply 12 of 54
    gqbgqb Posts: 1,934member
    Quote:
    Originally Posted by Bageljoey View Post


    I'm trying to think of the last time I heard of someone within Apple standing up to stiff opposition from Jobs who continued to be successful there...

    I guess it was all worth it, that's a lot of $$$.



    What in the world are you talking about?
  • Reply 13 of 54
    gqbgqb Posts: 1,934member
    Quote:
    Originally Posted by SpamSandwich View Post


    Exercising their right to sell their stock has nothing to do with opposing Steve, it's likely to avoid the capital gains tax increases thanks to our glorious leader in Washington... home of the anti-business mob.



    Yeah... the possibility of having to pay a couple percent more to pay for the commons that make that windfall possible is just oppressive.
  • Reply 14 of 54
    zindakozindako Posts: 468member
    Quote:
    Originally Posted by SpamSandwich View Post


    Exercising their right to sell their stock has nothing to do with opposing Steve, it's likely to avoid the capital gains tax increases thanks to our glorious leader in Washington... home of the anti-business mob.



    It's obvious we were better off under Bush and Cheney right?



    /facepalm
  • Reply 15 of 54
    strobestrobe Posts: 369member
    Sorry, was there any news here?



    Also, Obama = Bush so you can all stop arguing.
  • Reply 16 of 54
    bageljoeybageljoey Posts: 1,734member
    Quote:
    Originally Posted by GQB View Post


    What in the world are you talking about?



    Sorry. If neither you nor Spam could figure it out, I guess I wasn't clear.

    My point was supposed to be that Jobs has a reputation for being a "my way or the highway" kinda boss. I don't say this in a negative way--his vision and his refusal to compromise it is what has made Apple what it is today.



    So when this story comes along and mentions that this guy championed the Genius Bar over strong opposition from Jobs, I just thought it was interesting.



    I'm not sure how that ended up confusing people and bringing politics into the thread, but there it is...
  • Reply 17 of 54
    ezduzitezduzit Posts: 158member
    <So when this story comes along and mentions that this guy championed the Genius Bar over strong opposition from Jobs, I just thought it was interesting. >



    i guess that jobs didn't like highway driving and picked the scenic route. it's virtually impossible to quantify how much the retail stores helped apple to get to where it is today.
  • Reply 18 of 54
    bageljoeybageljoey Posts: 1,734member
    Quote:
    Originally Posted by ezduzit View Post




    i guess that jobs didn't like highway driving and picked the scenic route. it's virtually impossible to quantify how much the retail stores helped apple to get to where it is today.



    Wow, my point was not to argue the value of the Genius Bar either. I should just give up...



    But I'll take the bait.

    I think it would be a mistake to underestimate the importance of the Genius Bar in Apple's Mac resurgence.



    If you were considering "switching" back then, a big question was where could you go for service or problems with Macs? Best Buy? Curcuit City? Comp USA? The local computer store? Of course not!

    Sure, die-hard Mac folk were comfortable sending their systems to Apple, but switchers were going to need a little more comfort than that.

    And not just for service. For stupid questions too. The neighborhood geek who you asked for help restarting your Gateway would just shrug if you asked about a Mac back in the day. The GB offered people the quick and friendly hand-holding that they were going to need.



    The halo couldn't do it alone...
  • Reply 19 of 54
    malaxmalax Posts: 1,598member
    I agree with Bageljoey: the interesting part of the article (besides the "wow, that's a lot of money" aspect) is the bit about Jobs a) initially opposing the Genius Bar and b) being convinced to accept them anyway. How about that, Jobs listens to and accepts the judgement of his key people. You'd never know it based on the conventional "wisdom" about the man.
  • Reply 20 of 54
    Apple would be 50% what it is in every way if not for the Genius Bars. Come to the countries or cities where there are no official Apple Stores and the Apple experience is an order of magnitude lower.



    That said, Retail jobs are a real b*ch. Can't imagine going back to it. But who knows, you learn a lot of things about humanity.



    Overall, the Apple Store experience is still a notch above the Authorized Reseller experience. As such... I hope for more Apple Stores around the world. I also hope they continue to address issues that are raised about employment dissatisfaction (which happens from time to time) at Apple Stores.



    *sigh*

    Life is Complex

    but

    Can Be Simple
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