Apple executives awarded $122 million in stock grants
Apple last week granted more than $122 million in restricted stock-based compensation to members of its executive team for their current and future efforts in driving the company's success, regulatory filings with Securities and Exchange Commission show.
The grants for restricted stock units, which won't vest until March 24, 2012, aim to reward members of Apple's top brass for their performance thus far and lock them into their roles at the company for the foreseeable future. Should any of the executives vacate their position ahead of the vesting date, they'll forfeit their right to claim the shares.
In total, nine grants were issued ranging from 60,000 shares to 200,000 shares, which when combined carried a total market value of $122,101,600 based on the closing price of Apple shares Monday ($105.26).
The most heavily rewarded executives where Chief Operating Officer, Timothy D. Cook, who received 200,000 shares ($21,052,000), and Senior Vice President Retail, Ron Johnson, and Chief Financial Officer, Peter Oppenheimer, each of which were granted 150,000 shares ($15,789,000).
Five other executives were each granted 120,000 shares ($12,631,200), including Senior Vice President Worldwide Product Marketing, Phil Schiller; Senior Vice President Software Engineering, Bertrand Serlet; Senior Vice President Mac Hardware Engineering, Bob Mansfield; Senior Vice President Industrial Design, Jonathan Ive; and Senior Vice President iPhone Software, Scott Forstall.
Senior Vice President, General Counsel and Secretary, Daniel Cooperman, who came to Apple last year from Oracle, was issued a grant for 60,000 shares worth approximately $6,315,600.
The grants for restricted stock units, which won't vest until March 24, 2012, aim to reward members of Apple's top brass for their performance thus far and lock them into their roles at the company for the foreseeable future. Should any of the executives vacate their position ahead of the vesting date, they'll forfeit their right to claim the shares.
In total, nine grants were issued ranging from 60,000 shares to 200,000 shares, which when combined carried a total market value of $122,101,600 based on the closing price of Apple shares Monday ($105.26).
The most heavily rewarded executives where Chief Operating Officer, Timothy D. Cook, who received 200,000 shares ($21,052,000), and Senior Vice President Retail, Ron Johnson, and Chief Financial Officer, Peter Oppenheimer, each of which were granted 150,000 shares ($15,789,000).
Five other executives were each granted 120,000 shares ($12,631,200), including Senior Vice President Worldwide Product Marketing, Phil Schiller; Senior Vice President Software Engineering, Bertrand Serlet; Senior Vice President Mac Hardware Engineering, Bob Mansfield; Senior Vice President Industrial Design, Jonathan Ive; and Senior Vice President iPhone Software, Scott Forstall.
Senior Vice President, General Counsel and Secretary, Daniel Cooperman, who came to Apple last year from Oracle, was issued a grant for 60,000 shares worth approximately $6,315,600.
Comments
Considering how much cash Apple has on hand I'm fine with these numbers...
Edit: Do they not do partial vesting? I mean, if they say fully vested at 5 years and you leave at 4 do you get nothing or do you get a % of that? I thought most all places did % based vesting...
Can't wait to see what this post unleashes....
I can always tell when some is following the 'sound bite' instead of following the money.
I cannot name a time in recent memory that it'd be worse for this news to come out. The public (myself included) is VERY sensitive right now to the rich getting even more riches handed to them. So I'm really holding myself back right now to not light into Apple and ask how on earth these people managed to "earn" these millions of dollars. Oh, wait, I did just ask. Oh well--it needed asking.
How did they earn these millions? Because they are doing a good job.
No need to worry about things you don't (want to) understand.
Thanks bigmc6000 for your effort to clear up political confusion in previous post.
Can't wait to see what this post unleashes....
I can always tell when some is following the 'sound bite' instead of following the money.
Umm, ok???
Yeah, so what. There's nothing explosive about this post. Frankly, the way it's worded and the timing leads me to one conclusion. Stock influence or manipulation for AAPL shorts.
Spam, the filings were published today. We reported on them today. They were made Sept 26th. There is no hidden agenda.
K
Thanks bigmc6000 for your effort to clear up political confusion in previous post.
Can't wait to see what this post unleashes....
Well, let me unleash on a general note. If anyone deserves a bonus it must surely be the Apple execs. At least they didn't drive the company to the ground only to receive a bonus beyond what most people will earn in a lifetime! I am not sure how much each Apple exec will receive but on principle I am against massive bonuses. I know, I know... its what the market demands and is prepared to pay and what it takes to get and retain these people, but that doesn't make it right in my view. There is something obscene about the inequity of executive level compensation. I know all the arguments but I still find it hard to swallow that whilst some people get 'a few' millions for work well done others can't afford health care and decent food. Rewards where rewards are due, by all means, but its not as if these guys are struggling, nor as if they will have a problem getting another job, nor as if they'd sweep the street if that was better paid. Like I said, nothing against Apple, but this kind of news always make me wish we lived in a world where a more socialist distribution of wealth was not a sin.
I cannot name a time in recent memory that it'd be worse for this news to come out. The public (myself included) is VERY sensitive right now to the rich getting even more riches handed to them. So I'm really holding myself back right now to not light into Apple and ask how on earth these people managed to "earn" these millions of dollars. Oh, wait, I did just ask. Oh well--it needed asking.
Let's be clear. This is NOT a hand-out. Typically, the rich don't get hand-outs. Poor people get hand-outs. These stock payments are structured to payout in a way that requires these people to work hard and smart for the next 6 years! It's a carrot, an incentive plan. They don't get any money today. If any one of these people sits around and waits for the money to just come to them, they'll get nothing.
C-level execs are worth these payments because the work they do yields many times more millions of dollars for companies and shareholders. If you want a piece of this payment, buy Apple stock today, sit on your duff for 6 years, while these people work hard, and sell in 2012. That's more of a hand-out than this stock payment plan is.
I cannot name a time in recent memory that it'd be worse for this news to come out. The public (myself included) is VERY sensitive right now to the rich getting even more riches handed to them. So I'm really holding myself back right now to not light into Apple and ask how on earth these people managed to "earn" these millions of dollars. Oh, wait, I did just ask. Oh well--it needed asking.
On the contrary, this is EXACTLY the sort of compensation package top executives should be getting. Multi-million dollar salaries, bonuses, and golden parachutes are utterly ridiculous. Wall Street would do well to follow Apple's example and offer stock with a significant vesting/lock-out period. That way executives compensation is proportional to the added value they contribute to the shareholders.
Got to pay the senior exec's grossly inflated salaries.
On the contrary, this is EXACTLY the sort of compensation package top executives should be getting. Multi-million dollar salaries, bonuses, and golden parachutes are utterly ridiculous. Wall Street would do well to follow Apple's example and offer stock with a significant vesting/lock-out period. That way executives compensation is proportional to the added value they contribute to the shareholders.
Well said!
I cannot name a time in recent memory that it'd be worse for this news to come out. The public (myself included) is VERY sensitive right now to the rich getting even more riches handed to them. So I'm really holding myself back right now to not light into Apple and ask how on earth these people managed to "earn" these millions of dollars. Oh, wait, I did just ask. Oh well--it needed asking.
Your kidding.....right? This is one of the only tech companies right now with executives whom richly deserve a good reward for their work. Whatever their being paid its not enough. Oh, and....what Booga said!
How did they earn these millions? Because they are doing a good job.
No need to worry about things you don't (want to) understand.
Do you do a good job? Do you get millions? Didn't think so. So make me understand how they do thousands of times more work than you. (Hint that you apparently need: They don't.)
Now, I'm sure a few of you (who have already piped up) will say I think these executives don't work. BS. I know they work and work hard. But neither they nor anyone else on the planet works $6 million hard. There are only 24 hours in a day and so many good ideas. THEY DO NOT DESERVE THIS MUCH MORE THAN YOU. Have enough faith that you're also a hard worker that you'll let yourself cease believing they are worth so much more than you are.
In Japan there's a law that the highest-paid executive of a company cannot be paid more then 100x what the lowest-paid employee of that company makes. This keeps people like you from not only accepting but encouraging the growth of the disparity of wealth in their country.
There was also an article earlier this year describing how Apple engineers are underpaid compared to other big tech companies in the Valley. How about these stock options get distributed to them instead of the fat cats? I'm sure Apple engineers work pretty hard too. And they'd work harder if you gave them incentives to.
Thank goodness the House vote yesterday reflects the fact that people who support huge corporate bonuses are now in a small minority.
Your kidding.....right? This is one of the only tech companies right now with executives whom richly deserve a good reward for their work. Whatever their being paid its not enough.
Then why don't you volunteer to pay $100 more for your next Apple product? After all, you think Apple execs need more than just $6 million in bonuses.
No, I'm not kidding at all. In an age when people cannot afford gasoline or rent or food, when houses have yet to be rebuilt after Katrina let alone Ike, bonuses like this to the already rich are just obscene. But even worse are those like you who support the continued flow of wealth from the poor to the rich. It's tearing this country apart and yet you defend it.
I see no problems with this. I myself bought AAPL yesterday just before it closed and it looks to me that Apple is planning a long future.
This is not a handout. For those complaining or being "sensitive" to what happened yesterday, less talk and more action for you is needed. Go out and build your own multi-billion dollar company and do what you want with it. If you were in any of those executive's positions, you would be doing the exact same thing.
Don't hate the players. Hate the game.
Then why don't you volunteer to pay $100 more for your next Apple product? After all, you think Apple execs need more than just $6 million in bonuses.
No, I'm not kidding at all. In an age when people cannot afford gasoline or rent or food, when houses have yet to be rebuilt after Katrina let alone Ike, bonuses like this to the already rich are just obscene. But even worse are those like you who support the continued flow of wealth from the poor to the rich. It's tearing this country apart and yet you defend it.
Based on the lecture you're giving, I sincerely hope you bought AAPL at yesterday's closing price. Then instead of being all talk, you could cash out the stock in a few weeks due and donate the gains to whatever non-profit institution or cause you want.
Get over it. There are bigger fish to fry in the financial sector than trying to persecute Apple for rewarding incentives considering the huge success they've been having.
However, I do think executives getting huge payouts and golden parachutes for having their companies fail should be shot.