Apple exec Eddy Cue nets $59M in vested company stock
Fulfilling a contract award granted in 2011, Apple SVP of Internet Software and Services Eddy Cue saw 525,000 restricted stock units currently worth $59.2 million vest this week.
According to a regulatory filing published by the U.S. Securities and Exchange Commission on Friday, Cue converted 525,000 RSUs into common AAPL stock on Wednesday. Apple withheld 256,305 shares to satisfy statutory tax requirements, leaving Cue with 268,695 shares that were subsequently transferred to a family trust.
This week's transaction completes a 700,000 RSU award granted to Cue in 2011. The Apple executive saw 25 percent of that award, or 175,000 shares, vest in September 2014.
Cue first joined Apple in 1989, later rising to the rank of vice president of Internet Services before taking on his current role as SVP. During his tenure, the executive is credited with spearheading the rollout of Apple's online store in 1998, the iTunes Store in 2003 and the App Store in 2008. More recently, Cue's work has focused on expanding Apple Music, the company's fledgling streaming music service.
In a separate SEC filing made public on Friday, Apple SVP of Hardware Engineering Daniel Riccio sold off 22,381 shares of Apple stock worth $2.5 million.
Today's news comes after CEO Tim Cook received 1.26 million RSUs as part of a performance- and tenure-based bonus in late August. Cook immediately in $35.8 million worth of vested stock, and another $29 million a week later, leaving his trust with 1,039,809 Apple shares worth about $110 million.
Comments
I'm sure Cue looked at this as 30M gained, not 29M lost.
I clearly stated that his RSU was taxed as annually salary and not long term capital gains. The max marginal tax rate for Fed tax is 39.6% for any taxable income above about $425,000, (depending on filing status). That's as heavy as it can get. In CA, the max tax rate is 13.3% on taxable income above $1,000,000. That's a total of 49.9% on taxable income over $1,000,000. So basically, half the money he makes in annual salary over $1,000,000, goes to taxes. (Though he can deduct his State tax from his Fed tax when he itemizes) It's still an insane amount of money going toward taxes. And don't forget, this isn't like many European countries where a portion of it is going to pay for retirement benefits and medical benefits. Medicare was also deducted as a payroll tax. But no SS was deducted as SS deduction ceases above $117,000 annual salary.
When Steve Jobs 10M RSU became vested in 2006, he sold about $296,000,000 worth to satisfy taxes. It left him with $315,000,000 worth. Which he never sold and was worth $2B at the time of his death. Which was now subject to long term capital gains tax of 15% (at the time) on Fed taxes. But 12% State tax (at the time) as CA has no long term capital gain tax and everything is taxed as regular income. Which means the taxes on that $2B would be about $425,000,000. (after deducting the original $315,000,000, that was already taxed in 2006)
Therefore it doesn't make a bit of difference what senior management says or does; they are all being led around on a very short leash.
Its amazing; a company with 115,000 employees overseen by two people. Little wonder Apple is losing market share.
Take another look at the 60 Minutes segment of last year. Even though it was a performance for the cameras, I find it very, very telling of how the management of Apple works.
Add-in Tim Cooks propensity to make himself a celebrity. TC of late seems to spend a lot of time as an elbow rubber with the rich and famous and he is more than happy to have exposed that he had dinner with so-and-so or received phone calls from Streisand, or the many speaking engagements (even philanthropic) that are non-Apple related. In which all are a boost to TC's ego and have little to do with Apple becoming a better company.
So therefore, every innovation, every discovery, every decision of what path to go down, and every effort of all those employees needs to pass through and a final decision made by Tim and Jony.
While I'm on the soapbox, allow me to edit my final sentence from the previous post "It's amazing; a company with 115,000 employees --most of which are the best, finest, and most intelligent of our workforce--are overseen by two people. Little wonder is losing market share."
BTW, Apple's been "losing market" share since 2009... Guess they're doomed hmmm.