When it comes to their retail model it is VERY Apple. Its not the same game as the hardware side. There hasn't been a major change in Apple stores beyond the POS systems since they opened over a decade ago. Do you think Apple is really going to be rocking the boat in the next five years by the time his shares vest? If so, I have a bridge to nowhere to sell you...
Do you think you can honestly tell me what five years from now will be like? Five years ago today we were still all waiting with bated breath for the first iPhone. The Apple TV had just been given a lackluster reception, and the thought of unibody computers (even the unibody iMac) wasn't even in anyone's mind.
Do you think you can honestly tell me what five years from now will be like? Five years ago today we were still all waiting with bated breath for the first iPhone. The Apple TV had just been given a lackluster reception, and the thought of unibody computers (even the unibody iMac) wasn't even in anyone's mind.
Notice that pattern in everything you mentioned? ALL hardware. NOTHING retail.
EDIT: I'm very bullish on Apple's hardware future over the next five years. Even though it is hard to see where they can go in the immediate future that will be as dramatic as the iPhone and iPad, there are those much smarter then me hard at work on that making something I never knew I would "need." I just do not see any change in retail strategy in the next five years that justify a pay-off of this magnitude. Ten years out I'd whole-heartedly agree with you, but in the time this guys shares vest and he can jump ship, with $61mil in his pocket... not so much. Its a big expense for a guy taking over an operation that can mostly run on auto-pilot at the moment.
As an Apple share holder you should be asking tougher questions rather then blind allegiance to a CEO. Keeps 'em honest that way...
@TheDisco, ; I am so impressed by your cutting insight and business savvy. You are 100% sure that the new hire is a waste of money, and you are 100% sure I have blind allegiance to the Apple CEO. Must be nice living with such a great mind...
Golden handcuffs, but we don't even know if the guy is in fact golden yet. As for the barber comment it was funny, but if he can do the job he could have a mo-hawk for all I care. I'm a share holder. Seems a bit excessive.
Most important thing they can do is to keep hiring top-notch people and keep the stores feeling like Apple clubhouses instead of stores.
As an aside, I can't wait to see what the new Soho store looks like here in NYC. I have a feeling they're going to be making an even bigger deal out of the auditorium.
All he has to do is open up stores across China and he'll be a hero. What a great gig...Will he only pay a 15% tax rate when he sells his stock?
RSUs incur a tax liability which is treated as ordinary income when they become fully vested. The amount owed is based on the difference between the purchase price and the fair market value at the time when the vesting is complete. What typically happens is a partial sale of the newly vested RSUs to cover the taxes; the owner can keep the rest of the shares and any additional gains in value would be taxed as capital gains (short-term <1 yr., long-term >1 yr.).
There's also the Section 83(b) election, which allows the individual to declare the value at time of the grant, then pay the difference between the grant date and the exercise date as capital gains. That's sometimes a risk if the employee is no longer employed with the company at the time of the vesting date.
Oh, and it's likely that John Browett is not in the 15% tax bracket. Most likely he is somewhere in the 28% or upwards. Thus, regardless of income or short-term capital gains, he will probably owe the IRS 28% once the RSUs are issued.
What were people's impressions of Tim Cook when Apple hired him from Compaq? How did Cook or anybody else outside of Apple ever get hired? Isn't Apple supposed to be a self-sustaining company that breeds its own employees?
What were people's impressions of Tim Cook when Apple hired him from Compaq? How did Cook or anybody else outside of Apple ever get hired? Isn't Apple supposed to be a self-sustaining company that breeds its own employees?
SJ was careful with compensation, starting with his own compensation. After he died, management seems to have gone wild. They issued a bunch of options to themselves, a lot of it excessive. Now this guy has joined options party. To top if off, Apple is going to spend $10B to buy back a lot of these options/shares over 3 years. Why? So the stock price is boosted and to make their options valuable. Why do they have to do the buyback? If the talent was worth the compensation, then the stock price should go up!
Apple is not the worst offender. I would say QCOM, ORCL got to the top that list among the large cap techs.
<p> </p><div class="quote-container"> <span>Quote:</span> <div class="quote-block"> Originally Posted by <strong>beckman</strong> <a href="/t/149612/new-apple-retail-chief-john-browett-receives-61m-in-stock-rights#post_2100893"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" /></a><br /> <br /> <p> </p> <p> </p> <p> It appears the Tim Cook thinks that, and I believe he is in a much better position to make that INFORMED decision (and I am an APPL shareholder).</p> </div></div><p> </p><p> As an Apple share holder you should be asking tougher questions rather then blind allegiance to a CEO. Keeps 'em honest that way...</p>
As an Apple shareholder, he should know the ticker symbol....
<p> All he has to do is open up stores across China and he'll be a hero. What a great gig...Will he only pay a 15% tax rate when he sells his stock?</p>
<strong>NO.</strong>
Tim Cook and others had to set-aside a hefty chunk for taxes... I think it was more than 33%... look for the recent appleinsider article on the executive stock options exercised by Tim Cook and others at Apple...
... I notice that my Fu@k You (spelled the proper way) was modified as above by AI. Really AI? We need to be language policed? Oh, and while I am at it, this new forum update really sucks on the iPhone. The last one did, too, but this one is even worse. Hrmph!</p>
If AI made a change in your original comment it should be made clear (by AI) that the comment is changed and in what way.
Swearing isn't nice to read but I think it's the responsibility of the writer not AI.
It's maybe needed to step in if someone is promoting Mein Kampf or something similar but otherwise it's wrong to do so.
And yes AI is a lot slower on the iPhone and iPod and not completely compatible with Safari on iOS.
RSUs aren't exactly like Employee Stock Purchase Plans. There are typically performance clauses tied to the RSUs and management (or probably the board) would review whether or not he met those terms adequately before voting to issue the vested shares. There is likely a clause that allows the board to reduce the number of issued shares if the performance clauses were partially, but not fully met.
For Broward, one of the criteria would probably be revenue growth in store open at least one year. A future RSU grant would probably be tied to successful store openings under his tenure as well as increasing revenue from those stores after they have been open for a couple of years. Gross margin, customer satisfaction, a cap on operating costs are probably other ways he will be judged.
As I touched upon earlier, boards can decide to issue part of the RSUs. Example: Microsoft's board withheld some of Ballmer's annual bonus due to lack of execution in the mobile market.
It's not Apple that does this. This is very commonplace.
<div class="quote-container"> <span>Quote:</span> <div class="quote-block"> Originally Posted by <strong>jnjnjn</strong> <a href="/t/149612/new-apple-retail-chief-john-browett-receives-61m-in-stock-rights#post_2100947"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" /></a><br /> If AI made a change in your original comment it should be made clear (by AI) that the comment is changed and in what way.<br /> Swearing isn't nice to read but I think it's the responsibility of the writer not AI.</div></div><p> </p><p> Huddler automatically censors swearing. We didn't do anything.</p>
Comments
Quote:
Originally Posted by TheDisco
does anyone really think this guy is in a position within the company that will add $61 million dollars in value to it?
It appears the Tim Cook thinks that, and I believe he is in a much better position to make that INFORMED decision (and I am an APPL shareholder).
All he has to do is open up stores across China and he'll be a hero. What a great gig...Will he only pay a 15% tax rate when he sells his stock?
Quote:
Originally Posted by beckman
It appears the Tim Cook thinks that, and I believe he is in a much better position to make that INFORMED decision (and I am an APPL shareholder).
As an Apple share holder you should be asking tougher questions rather then blind allegiance to a CEO. Keeps 'em honest that way...
Quote:
Originally Posted by TheDisco
When it comes to their retail model it is VERY Apple. Its not the same game as the hardware side. There hasn't been a major change in Apple stores beyond the POS systems since they opened over a decade ago. Do you think Apple is really going to be rocking the boat in the next five years by the time his shares vest? If so, I have a bridge to nowhere to sell you...
Do you think you can honestly tell me what five years from now will be like? Five years ago today we were still all waiting with bated breath for the first iPhone. The Apple TV had just been given a lackluster reception, and the thought of unibody computers (even the unibody iMac) wasn't even in anyone's mind.
Quote:
Originally Posted by Tallest Skil
Do you think you can honestly tell me what five years from now will be like? Five years ago today we were still all waiting with bated breath for the first iPhone. The Apple TV had just been given a lackluster reception, and the thought of unibody computers (even the unibody iMac) wasn't even in anyone's mind.
Notice that pattern in everything you mentioned? ALL hardware. NOTHING retail.
EDIT: I'm very bullish on Apple's hardware future over the next five years. Even though it is hard to see where they can go in the immediate future that will be as dramatic as the iPhone and iPad, there are those much smarter then me hard at work on that making something I never knew I would "need." I just do not see any change in retail strategy in the next five years that justify a pay-off of this magnitude. Ten years out I'd whole-heartedly agree with you, but in the time this guys shares vest and he can jump ship, with $61mil in his pocket... not so much. Its a big expense for a guy taking over an operation that can mostly run on auto-pilot at the moment.
Quote:
Originally Posted by TheDisco
As an Apple share holder you should be asking tougher questions rather then blind allegiance to a CEO. Keeps 'em honest that way...
@TheDisco, ; I am so impressed by your cutting insight and business savvy. You are 100% sure that the new hire is a waste of money, and you are 100% sure I have blind allegiance to the Apple CEO. Must be nice living with such a great mind...
Golden handcuffs, but we don't even know if the guy is in fact golden yet. As for the barber comment it was funny, but if he can do the job he could have a mo-hawk for all I care. I'm a share holder. Seems a bit excessive.
Quote:
Originally Posted by TheDisco
Notice that pattern in everything you mentioned? ALL hardware. NOTHING retail.
Go ahead and continue to believe that thinking doesn't translate.
Most important thing they can do is to keep hiring top-notch people and keep the stores feeling like Apple clubhouses instead of stores.
As an aside, I can't wait to see what the new Soho store looks like here in NYC. I have a feeling they're going to be making an even bigger deal out of the auditorium.
Quote:
Originally Posted by syracuse
All he has to do is open up stores across China and he'll be a hero. What a great gig...Will he only pay a 15% tax rate when he sells his stock?
RSUs incur a tax liability which is treated as ordinary income when they become fully vested. The amount owed is based on the difference between the purchase price and the fair market value at the time when the vesting is complete. What typically happens is a partial sale of the newly vested RSUs to cover the taxes; the owner can keep the rest of the shares and any additional gains in value would be taxed as capital gains (short-term <1 yr., long-term >1 yr.).
There's also the Section 83(b) election, which allows the individual to declare the value at time of the grant, then pay the difference between the grant date and the exercise date as capital gains. That's sometimes a risk if the employee is no longer employed with the company at the time of the vesting date.
www.investopedia.com/articles/tax/09/restricted-stock-tax.asp
http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States
Oh, and it's likely that John Browett is not in the 15% tax bracket. Most likely he is somewhere in the 28% or upwards. Thus, regardless of income or short-term capital gains, he will probably owe the IRS 28% once the RSUs are issued.
What were people's impressions of Tim Cook when Apple hired him from Compaq? How did Cook or anybody else outside of Apple ever get hired? Isn't Apple supposed to be a self-sustaining company that breeds its own employees?
Quote:
Originally Posted by Haggar
What were people's impressions of Tim Cook when Apple hired him from Compaq? How did Cook or anybody else outside of Apple ever get hired? Isn't Apple supposed to be a self-sustaining company that breeds its own employees?
There's an app for that
SJ was careful with compensation, starting with his own compensation. After he died, management seems to have gone wild. They issued a bunch of options to themselves, a lot of it excessive. Now this guy has joined options party. To top if off, Apple is going to spend $10B to buy back a lot of these options/shares over 3 years. Why? So the stock price is boosted and to make their options valuable. Why do they have to do the buyback? If the talent was worth the compensation, then the stock price should go up!
Apple is not the worst offender. I would say QCOM, ORCL got to the top that list among the large cap techs.
As an Apple shareholder, he should know the ticker symbol....
<strong>NO.</strong>
Tim Cook and others had to set-aside a hefty chunk for taxes... I think it was more than 33%... look for the recent appleinsider article on the executive stock options exercised by Tim Cook and others at Apple...
I think the guy should have to prove himself before he's given a huge stock grant. What 'innovation' needs to be brought to Apple retail right now?
If AI made a change in your original comment it should be made clear (by AI) that the comment is changed and in what way.
Swearing isn't nice to read but I think it's the responsibility of the writer not AI.
It's maybe needed to step in if someone is promoting Mein Kampf or something similar but otherwise it's wrong to do so.
And yes AI is a lot slower on the iPhone and iPod and not completely compatible with Safari on iOS.
J.
Note to the folks saying he has done anything:
RSUs aren't exactly like Employee Stock Purchase Plans. There are typically performance clauses tied to the RSUs and management (or probably the board) would review whether or not he met those terms adequately before voting to issue the vested shares. There is likely a clause that allows the board to reduce the number of issued shares if the performance clauses were partially, but not fully met.
For Broward, one of the criteria would probably be revenue growth in store open at least one year. A future RSU grant would probably be tied to successful store openings under his tenure as well as increasing revenue from those stores after they have been open for a couple of years. Gross margin, customer satisfaction, a cap on operating costs are probably other ways he will be judged.
As I touched upon earlier, boards can decide to issue part of the RSUs. Example: Microsoft's board withheld some of Ballmer's annual bonus due to lack of execution in the mobile market.
It's not Apple that does this. This is very commonplace.
Quote:
Originally Posted by jnjnjn
If AI made a change in your original comment it should be made clear (by AI) that the comment is changed and in what way.
Swearing isn't nice to read but I think it's the responsibility of the writer not AI.
Huddler automatically censors swearing. We didn't do anything.
I request to turn the censoring off.
J.