Apple exec Eddy Cue nets $59M in vested company stock

Posted:
in AAPL Investors edited February 2020
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.
Apple's Eddy Cue at SXSW 2018
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.
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Comments

  • Reply 1 of 22
    Hmm...
  • Reply 2 of 22
    "que" posts from regular concern trolls who think they know better than his boss that he sucks and should be fired, etc etc. if only poor, hapless Cook knew what our dear readers know!
    mike1pscooter63Rayz2016badmonkjony0
  • Reply 3 of 22
    I like Eddy because of his history with the company and past with Jobs... but he's bitten off (or been given a bite) more than he can chew and should probably have a lesser role/comp at the company.  iTunes is a mess, AppleTV is still without content deals and not best in class, iCloud is still an untamed beast, etc.  Yes, yes, Apple has always had issues with cloud/SAS pre-dating MobileMe going back to eWorld... so you could say he runs the most difficult area of the business for Apple.  Ok, fair enough, but its still a mess so lets refresh and get some more talent on it, and reduce Eddy's load a little... and for god sakes lets not overpay him like this.  Its not like he has keys to the castle.
    calirogifan_newpatchythepiratebobrooSpamSandwich
  • Reply 4 of 22
    Too bad it's not a severance package. 
    rogifan_newpatchythepirateSpamSandwich
  • Reply 5 of 22
    Good for him. Superbly deserved for all the work he's done in the past. In fact, it's a small number when you consider that folks like that Wells Fargo lady (who oversaw the creation of 2 million fake accounts by her underlings) who walked away with $125 million. Cue has created a lot of value of Apple's shareholders during his tenure. (That is not to say that he can do so going forward; that remains to be seen).


    edited September 2016 JanNLbadmonkhmmthepixeldocjony0
  • Reply 6 of 22
    widmark said:
    I like Eddy because of his history with the company and past with Jobs... but he's bitten off (or been given a bite) more than he can chew and should probably have a lesser role/comp at the company.  iTunes is a mess, AppleTV is still without content deals and not best in class, iCloud is still an untamed beast, etc.  Yes, yes, Apple has always had issues with cloud/SAS pre-dating MobileMe going back to eWorld... so you could say he runs the most difficult area of the business for Apple.  Ok, fair enough, but its still a mess so lets refresh and get some more talent on it, and reduce Eddy's load a little... and for god sakes lets not overpay him like this.  Its not like he has keys to the castle.
    You forget iWork's mess.
    rogifan_newSpamSandwich
  • Reply 7 of 22
    koopkoop Posts: 337member
    My lord the amount executives get paid in this country is absolutely insane. Even morally bankrupt executives like the Wells Fargo guy might leave with 200 million dollars. 
    nolamacguymdriftmeyer
  • Reply 8 of 22
    davidwdavidw Posts: 1,328member
    koop said:
    My lord the amount executives get paid in this country is absolutely insane. Even morally bankrupt executives like the Wells Fargo guy might leave with 200 million dollars. 
    I tend to look at it another way. Eddy "netted" $59.2M worth of vested stocks but the IRS kept $29M of it for tax purposes. The amount executives has to pay in taxes, on the amount of their salary that is over $425,000, is absolutely insane. Once vested, RSU's are consider part of his annual salary and not long term capital gains.
  • Reply 9 of 22
    davidw said:
    koop said:
    My lord the amount executives get paid in this country is absolutely insane. Even morally bankrupt executives like the Wells Fargo guy might leave with 200 million dollars. 
    I tend to look at it another way. Eddy "netted" $59.2M worth of vested stocks but the IRS kept $29M of it for tax purposes. The amount executives has to pay in taxes, on the amount of their salary that is over $425,000, is absolutely insane. Once vested, RSU's are consider part of his annual salary and not long term capital gains.
    So you are saying he should not be taxed as earnings.  These are RSUs not options.  Therefore this is a bonus which are always taxed heavily and at time of payment.
    I'm sure Cue looked at this as 30M gained, not 29M lost.
  • Reply 10 of 22
    Good for him. Superbly deserved for all the work he's done in the past. In fact, it's a small number when you consider that folks like that Wells Fargo lady (who oversaw the creation of 2 million fake accounts by her underlings) who walked away with $125 million. Cue has created a lot of value of Apple's shareholders during his tenure. (That is not to say that he can do so going forward; that remains to be seen).


    What has he done lately? Nothing really...I don't really know what he has done for Apple at all except be the CEO's buddy. 
    edited September 2016
  • Reply 11 of 22
    Obscene, especially in lights of the Beats fiasco.
  • Reply 12 of 22
    And the rich get richer. (libertarian come and get this bait). 
  • Reply 13 of 22
    davidwdavidw Posts: 1,328member
    doggone said:
    davidw said:
    koop said:
    My lord the amount executives get paid in this country is absolutely insane. Even morally bankrupt executives like the Wells Fargo guy might leave with 200 million dollars. 
    I tend to look at it another way. Eddy "netted" $59.2M worth of vested stocks but the IRS kept $29M of it for tax purposes. The amount executives has to pay in taxes, on the amount of their salary that is over $425,000, is absolutely insane. Once vested, RSU's are consider part of his annual salary and not long term capital gains.
    So you are saying he should not be taxed as earnings.  These are RSUs not options.  Therefore this is a bonus which are always taxed heavily and at time of payment.
    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) 
    edited September 2016
  • Reply 14 of 22
    davidw said:
    doggone said:
    davidw said:
    koop said:
    My lord the amount executives get paid in this country is absolutely insane. Even morally bankrupt executives like the Wells Fargo guy might leave with 200 million dollars. 
    I tend to look at it another way. Eddy "netted" $59.2M worth of vested stocks but the IRS kept $29M of it for tax purposes. The amount executives has to pay in taxes, on the amount of their salary that is over $425,000, is absolutely insane. Once vested, RSU's are consider part of his annual salary and not long term capital gains.
    So you are saying he should not be taxed as earnings.  These are RSUs not options.  Therefore this is a bonus which are always taxed heavily and at time of payment.
    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) 
    Boo hoo. Loraine is now worth in excess of $20 Billion. I shed no tears for her taxes.
  • Reply 15 of 22
    widmark said:
    I like Eddy because of his history with the company and past with Jobs... but he's bitten off (or been given a bite) more than he can chew and should probably have a lesser role/comp at the company.  iTunes is a mess, AppleTV is still without content deals and not best in class, iCloud is still an untamed beast, etc.  Yes, yes, Apple has always had issues with cloud/SAS pre-dating MobileMe going back to eWorld... so you could say he runs the most difficult area of the business for Apple.  Ok, fair enough, but its still a mess so lets refresh and get some more talent on it, and reduce Eddy's load a little... and for god sakes lets not overpay him like this.  Its not like he has keys to the castle.
    While agree with everything you've stated; I see  the problem is that this is Tim and Jony's Apple Computers. Tim and Jony micro manage every single detail of this company.

    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.
  • Reply 16 of 22
    bobroo said:
    widmark said:
    I like Eddy because of his history with the company and past with Jobs... but he's bitten off (or been given a bite) more than he can chew and should probably have a lesser role/comp at the company.  iTunes is a mess, AppleTV is still without content deals and not best in class, iCloud is still an untamed beast, etc.  Yes, yes, Apple has always had issues with cloud/SAS pre-dating MobileMe going back to eWorld... so you could say he runs the most difficult area of the business for Apple.  Ok, fair enough, but its still a mess so lets refresh and get some more talent on it, and reduce Eddy's load a little... and for god sakes lets not overpay him like this.  Its not like he has keys to the castle.
    While agree with everything you've stated; I see  the problem is that this is Tim and Jony's Apple Computers. Tim and Jony micro manage every single detail of this company.

    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.
    Your source for this?
    thepixeldocmacxpressh2p
  • Reply 17 of 22
    davidwdavidw Posts: 1,328member
    davidw said:
    doggone said:
    davidw said:
    koop said:
    My lord the amount executives get paid in this country is absolutely insane. Even morally bankrupt executives like the Wells Fargo guy might leave with 200 million dollars. 
    I tend to look at it another way. Eddy "netted" $59.2M worth of vested stocks but the IRS kept $29M of it for tax purposes. The amount executives has to pay in taxes, on the amount of their salary that is over $425,000, is absolutely insane. Once vested, RSU's are consider part of his annual salary and not long term capital gains.
    So you are saying he should not be taxed as earnings.  These are RSUs not options.  Therefore this is a bonus which are always taxed heavily and at time of payment.
    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) 
    Boo hoo. Loraine is now worth in excess of $20 Billion. I shed no tears for her taxes.
    And like Bill Gates and Warren Buffet, she will pay little taxes on her fortune as she will most likely give most of it away through her charity foundation. And then I will shed no tears for the government not getting their insane cut as the money will be better spent. 
    h2p
  • Reply 18 of 22
    bobroo said:
    widmark said:
    I like Eddy because of his history with the company and past with Jobs... but he's bitten off (or been given a bite) more than he can chew and should probably have a lesser role/comp at the company.  iTunes is a mess, AppleTV is still without content deals and not best in class, iCloud is still an untamed beast, etc.  Yes, yes, Apple has always had issues with cloud/SAS pre-dating MobileMe going back to eWorld... so you could say he runs the most difficult area of the business for Apple.  Ok, fair enough, but its still a mess so lets refresh and get some more talent on it, and reduce Eddy's load a little... and for god sakes lets not overpay him like this.  Its not like he has keys to the castle.
    While agree with everything you've stated; I see  the problem is that this is Tim and Jony's Apple Computers. Tim and Jony micro manage every single detail of this company.

    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.
    Your source for this?
    None...just pulling it out of this @$$...
  • Reply 19 of 22
    bobroo said:
    widmark said:
    I like Eddy because of his history with the company and past with Jobs... but he's bitten off (or been given a bite) more than he can chew and should probably have a lesser role/comp at the company.  iTunes is a mess, AppleTV is still without content deals and not best in class, iCloud is still an untamed beast, etc.  Yes, yes, Apple has always had issues with cloud/SAS pre-dating MobileMe going back to eWorld... so you could say he runs the most difficult area of the business for Apple.  Ok, fair enough, but its still a mess so lets refresh and get some more talent on it, and reduce Eddy's load a little... and for god sakes lets not overpay him like this.  Its not like he has keys to the castle.
    While agree with everything you've stated; I see  the problem is that this is Tim and Jony's Apple Computers. Tim and Jony micro manage every single detail of this company.

    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.
    Your source for this?
    My source?

    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."
  • Reply 20 of 22
    bobroo said:
    widmark said:
    I like Eddy because of his history with the company and past with Jobs... but he's bitten off (or been given a bite) more than he can chew and should probably have a lesser role/comp at the company.  iTunes is a mess, AppleTV is still without content deals and not best in class, iCloud is still an untamed beast, etc.  Yes, yes, Apple has always had issues with cloud/SAS pre-dating MobileMe going back to eWorld... so you could say he runs the most difficult area of the business for Apple.  Ok, fair enough, but its still a mess so lets refresh and get some more talent on it, and reduce Eddy's load a little... and for god sakes lets not overpay him like this.  Its not like he has keys to the castle.
    While agree with everything you've stated; I see  the problem is that this is Tim and Jony's Apple Computers. Tim and Jony micro manage every single detail of this company.

    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.
    It's not losing market share were it counts, share of industry profits.... Thanks for playing though.

    BTW, Apple's been "losing market" share since 2009... Guess they're doomed hmmm.
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