Apple execs reap more than $19M each in vested stock bonus
Apple's executive team, including head of retail Angela Ahrendts and SVP of Internet Software and Services Eddy Cue, on Sunday saw batches of performance based restricted stock unit awards vest, netting each common shares worth more than $19 million.
According to a series of U.S. Securities and Exchange Commission filings made public on Tuesday, the RSUs vested on Oct. 1 originate from an Apple incentive plan dating back to 2014.
Along with Ahrendts and Cue, Apple SVP of Software Engineering Craig Federighi, CFO Luca Maestri, SVP of Hardware Engineering Dan Riccio, SVP of Worldwide Marketing Phil Schiller, SVP and General Counsel Bruce Sewell and COO Jeff Williams each saw awards converted into 125,494 common shares. At the start of trading on Monday, the package was worth nearly $19.4 million.
As is standard operating procedure, Apple withheld 68,686 shares from awards received by Ahrendts, Maestri, Schiller and Williams to satisfy tax laws. Cue, Federighi, Riccio and Sewell saw 62,929 shares withheld for the same reason.
Under terms of the award, a percentage of 68,576 RSUs were scheduled to vest based on Apple's total shareholder return relative to other companies in the S&P 500 from Sept. 28, 2014 through Sept. 30, 2017. TSR is calculated based on AAPL share priced during the three-year period, with initial value pegged at $100.66. Adjusted for dividends, Apple's ending value as of Sept. 30 was calculate to be $166.62, meaning the TSR was 65.53 percent.
Apple's TSR ranked the company in 92nd of the 451 entities included in the S&P 500 during the evaluation period, good enough to place in the 80th percentile. The plan called for 200 percent of the 68,576 RSUs to vest had Apple stock placed in the 85th percentile. Instead, the executives saw their award vest on a straight line basis calculated off the next vesting percentage, which was 100 percent for the 55th percentile.
According to a series of U.S. Securities and Exchange Commission filings made public on Tuesday, the RSUs vested on Oct. 1 originate from an Apple incentive plan dating back to 2014.
Along with Ahrendts and Cue, Apple SVP of Software Engineering Craig Federighi, CFO Luca Maestri, SVP of Hardware Engineering Dan Riccio, SVP of Worldwide Marketing Phil Schiller, SVP and General Counsel Bruce Sewell and COO Jeff Williams each saw awards converted into 125,494 common shares. At the start of trading on Monday, the package was worth nearly $19.4 million.
As is standard operating procedure, Apple withheld 68,686 shares from awards received by Ahrendts, Maestri, Schiller and Williams to satisfy tax laws. Cue, Federighi, Riccio and Sewell saw 62,929 shares withheld for the same reason.
Under terms of the award, a percentage of 68,576 RSUs were scheduled to vest based on Apple's total shareholder return relative to other companies in the S&P 500 from Sept. 28, 2014 through Sept. 30, 2017. TSR is calculated based on AAPL share priced during the three-year period, with initial value pegged at $100.66. Adjusted for dividends, Apple's ending value as of Sept. 30 was calculate to be $166.62, meaning the TSR was 65.53 percent.
Apple's TSR ranked the company in 92nd of the 451 entities included in the S&P 500 during the evaluation period, good enough to place in the 80th percentile. The plan called for 200 percent of the 68,576 RSUs to vest had Apple stock placed in the 85th percentile. Instead, the executives saw their award vest on a straight line basis calculated off the next vesting percentage, which was 100 percent for the 55th percentile.
Comments
Steve would be rolling in his grave. Or is.
Meanwhile, Apple is bigger and more successful than ever. Which is what performance bonuses are tied to (and not fansite popular opinions, thankfully).
Eddie Cue isn't my cup of tea, but so far, I'm not seeing the negatives that some others do, maybe because almost everything that Eddie does is behind the scenes.
I have no idea what Steve does in his grave, but rolling around doesn't seem like what he would waste his afterlife doing, if you believe in that sort of thing, and I don't.
Honestly this statement itself should be bannable offense. Doesn't add anything, it's simply the lowest form of trolling.
Apple has never been more successful. So yeah, they're worth it according to every single metric that's out there, regardless of what some random dude on an internet forum thinks of their worth, based on absolutely nothing. There's nothing to suggest that SJ wouldn't be incredibly proud of where Apple is today, and yet people like you shit on the company day in and day out, and pretend to know its dead founder's inner most thoughts to smear it even further.
As for Cue, AppleTV is overpriced and under featured compared to the competition. I don't use Apple Music but from what I see, it's not any different from any other streaming music service.
Few of them deserve a $19M payday.
Apple's iPhone and Mac hardware is still the best though. Siri on the other hand is nowhere near as good as Google's implementation. And I say that with no joy.
Nothing to see here, move along...
-Maps: bumbled, saved by other execs taking over (per Apple sanctioned article)
-app store: bumbled, save by another exec taking over (common knowledge)
-Siri: multiple year lead squandered, now only just starting to be reliable after 7 years in development, thank god; although, still, if you pause for half a second, or say one “um”,
youre fucked and have to start over. And Siri is now being overseen by Federighi.
-no comprehensive content deal for tv (perhaps flip flops and a Hawaiian shirt aren’t the best way to be taken seriously)
-Apple Music with a relatively meager rollout despite being the default media app and working with Siri.
-Apple Music app: Apple’s slam dunk, golden key into social/media/culture is a socially crippled app with almost no ability to share or express yourself (the cornerstone of any popular social app). All you can do is share a playlist, after 3 years of development? Unbelievable. I use and enjoy Apple Music on a daily basis despite this. Also, the New Music playlists are way too hit or miss.
-carpool karaoke and planet of the apps? Weren’t they supposed to get big releases in April? Then pushed back to late summer. They don’t seem to be too successful.
-...
Apple’s hardware, core software, and retail are all in a league of their own, phenomenal. But there’s a certain area of Apple that isn’t even close to the standard set by those three areas. As an Apple fan, who is a completely immersed Apple user, it’s fristrating to see the obvious gaps.
I think AI is deliberately trolling readers by mentioning Eddie Cue and not rock star Craig! The moment I saw Eddie's photo, I knew what was coming. The first 2 posts didn't disappoint.
When I saw Angela on the Keynote Presentation last month I felt that she could play Amy Schumer's mother!
The corollory of this is if the executive leaves or is fired, no matter how previously competent or well liked, he is despised. Like that charlatan Scott Forstall. Oh, how we hate Scott. We should organise a hate hour.
Cook isnt really being criticised here. As for Angela, I dont understand the need for needing her rather than someone internal being promoted. I think she was brought in because Apple saw the watch as a fashion accessory and hoped to expand on that. However it doesnt look like the apple watch is really moving the dial as they say.
Cue deserves criticism as he is ten kinds of sh1te.
By the way while the idea that Steve Jobs wouldnt have hired these guys is tiresome, so is the idea that all of Steve Jobs hires were brilliant.
Cook bounced Browett after a few months, so if Cue is as bad as the experts here think he is, then why hasn’t he been fired? Could it be because he’s running the fastest growing division at Apple and responsible for possibly the biggest infrastructure rollout in recent history?
And the reason you read it a lot on forums is because it’s a trendy thing that folk like to say because they think it makes them look clever. A bit like when folk insist that the MacBook Pro doesn’t have enough memory for them, even though they’ve never seen it; or that FaceID will expose their data when someone pickpockets their phone, yells “hey you” to make the owner look at them and then runs off with the unlocked phone (I love that as an idea); oh and my personal favourite: music streaming should be a separate app because normal people love to play a song on one app and then switch to a different app to play another.
Cue doesn't design the feature set nor the price of the ATV as far as I'm aware (but hey).
Apple Music is different than other streaming services, because it isn't (only) a streaming service. AM isn't a separate app and as such fully integrates with my personal library, creating one mass of music I can listen to at any time, with blended playlists of my tracks and AM tracks.
But I agree that executive pay is completely absurd, the ration of top executive pay to average salaried employee is 400:1 or worse and I don't believe they are actually 400x more effective. The people under the executive enable the executive, and without them the executive cannot deliver much more value than an individual.