Apple VP exercises stock options for $9.6M profit
With Apple's Retail strategy well on its feet and raking in cash, the company's retail chief cashes in on stock options.
Two days after Apple Computer announced its iPod Photo and U2 iPod, company Senior Vice President Ron Johnson reaped a US$9.6 million dollar profit on stock options last Thursday, as Apple's stock flirted with a new yearly high, writes The Mac Observer.
Johnson reportedly purchased the 300,000 shares of Apple stock on Oct. 28 for $18.59 and immediately dumped them at a market value of $50.5875 a share, taking home a pre-tax profit of $9,626,250.00, according to a a filing made Monday with the U.S. Securities and Exchange Commission.
Prior to heading up Apple's retail strategy, Johnson held various management positions at the Target Corporation, including Vice President of Merchandising for Target Stores.
During Apple's last fiscal year, the company's retail stores hosted 24 million visitors and generated $1.2 billion in revenues, continuing one of the greatest success stories in retail history.
Speaking at the annual conference of The Center for Design and Business in Providence, RI this April, Johnson announced that Apple's stores were the fastest retail chain to ever to reach the $1 billion sales figure (3 years), besting previous record-holder The Gap, which took 4 years to hit the same figure.
Two days after Apple Computer announced its iPod Photo and U2 iPod, company Senior Vice President Ron Johnson reaped a US$9.6 million dollar profit on stock options last Thursday, as Apple's stock flirted with a new yearly high, writes The Mac Observer.
Johnson reportedly purchased the 300,000 shares of Apple stock on Oct. 28 for $18.59 and immediately dumped them at a market value of $50.5875 a share, taking home a pre-tax profit of $9,626,250.00, according to a a filing made Monday with the U.S. Securities and Exchange Commission.
Prior to heading up Apple's retail strategy, Johnson held various management positions at the Target Corporation, including Vice President of Merchandising for Target Stores.
During Apple's last fiscal year, the company's retail stores hosted 24 million visitors and generated $1.2 billion in revenues, continuing one of the greatest success stories in retail history.
Speaking at the annual conference of The Center for Design and Business in Providence, RI this April, Johnson announced that Apple's stores were the fastest retail chain to ever to reach the $1 billion sales figure (3 years), besting previous record-holder The Gap, which took 4 years to hit the same figure.
Comments
Originally posted by fahlman
So Mr. Johnson beleives that we have seen Apple's stock peak and is getting out while the getting is good?
No, he's just smart is all. Even if AAPL goes up more, he did just fine obviously...
Edit: I was kidding. What's the difference between 9.6 and 10.2?
Way to go, Apple..
Apple VP excercises stock options for $9.6 profit
$10 profit? Fix the title.
Originally posted by fahlman
So Mr. Johnson beleives that we have seen Apple's stock peak and is getting out while the getting is good?
Or he saw a house he wanted, or he had a side venture he needed to finance, or, or, or...
There are a million reasons why he may have sold now... a perceived peak being only one of them.
Given the advance warning that officers of the company need to give before selling though, he likely filed for this weeks or months ago.
Here's the link to see all the insider transactions.
http://finance.yahoo.com/q/it?s=AAPL
Originally posted by Kickaha
Or he saw a house he wanted, or he had a side venture he needed to finance, or, or, or...
There are a million reasons why he may have sold now... a perceived peak being only one of them.
Given the advance warning that officers of the company need to give before selling though, he likely filed for this weeks or months ago.
Exactly.
Now if I can just track him down so I he can help fund my movie!
Originally posted by AppleInsider
With Apple's Retail strategy well on its feet and raking in cash...
Good to see you fixed this. Bleeding cash of course means *losing* money.
They have to either 1. develop an strategy to continue ipod like growth or 2. improve the mac division. None of these will not be easy.
I am not sure whether the gain was paper gain or not, but if his company's stock will go down signficantly and he escaped with cash, then he will be the one that shareholders would be furious about. Exercising decision is not easy.
i am not selling.
it will split at 60 something.
think different.