Apple exec Bob Mansfield cashes in on $13.7M in stock
Apple Senior Vice President Bob Mansfield sold all but 501 of his shares of Apple stock for a total payout of $13.7 million dollars earlier this week, according to an SEC filing.
Mansfield has served as Apple's first Senior Vice President of Mac Hardware Engineering since 2008. He distinguished himself quickly after joining Apple during the company's acquisition of Raycer Graphics in 1999 and now reports directly to Chief Operating Officer Tim Cook.
Last August, Mansfield's role at the company was expanded to include oversight of Apple's iPod and iPhone divisions after executive Mark Papermaster abruptly left Apple because of a reported falling out with CEO Steve Jobs.
According to a recent Form 4 filing with the Securities Exchange Commission discovered by Fortune, Mansfield sold 38,863 shares of Apple stock priced at a weighted average of $351.89 for a total of almost $13.7 million. Mansfield held onto 501 shares of Apple, or roughly one percent of his Apple portfolio.
During his time at the Cupertino, Calif., company, Mansfield has been amply rewarded with stock options and stock grants. For instance, after being promoted to Senior Vice President, Mansfield was awarded a grant for 25,000 restricted Apple stock units that vested on March 24, 2010.
In October 2010, Mansfield exercised 40,000 stock options at a strike price of $36.54 to net a profit of $10.8 million before taxes and fees. Mansfield has sold close to $58.5 million worth of stock over the past three years for a net gain of $37.9 million after taxes.
After having sold off most of his liquid stake in Apple, Mansfield holds vested options to buy 30,000 shares of Apple stock at $36.54, as well as 100,000 restricted stock units that will vest in 2014 should he stay with the company.
Mansfield has served as Apple's first Senior Vice President of Mac Hardware Engineering since 2008. He distinguished himself quickly after joining Apple during the company's acquisition of Raycer Graphics in 1999 and now reports directly to Chief Operating Officer Tim Cook.
Last August, Mansfield's role at the company was expanded to include oversight of Apple's iPod and iPhone divisions after executive Mark Papermaster abruptly left Apple because of a reported falling out with CEO Steve Jobs.
According to a recent Form 4 filing with the Securities Exchange Commission discovered by Fortune, Mansfield sold 38,863 shares of Apple stock priced at a weighted average of $351.89 for a total of almost $13.7 million. Mansfield held onto 501 shares of Apple, or roughly one percent of his Apple portfolio.
During his time at the Cupertino, Calif., company, Mansfield has been amply rewarded with stock options and stock grants. For instance, after being promoted to Senior Vice President, Mansfield was awarded a grant for 25,000 restricted Apple stock units that vested on March 24, 2010.
In October 2010, Mansfield exercised 40,000 stock options at a strike price of $36.54 to net a profit of $10.8 million before taxes and fees. Mansfield has sold close to $58.5 million worth of stock over the past three years for a net gain of $37.9 million after taxes.
After having sold off most of his liquid stake in Apple, Mansfield holds vested options to buy 30,000 shares of Apple stock at $36.54, as well as 100,000 restricted stock units that will vest in 2014 should he stay with the company.
Comments
Certainly a great time to sell AAPL stock. Low capital gains taxes and $350 a share. Well done sir.
Can you explain the capital gains situation? I have AAPL that I'm thinking of selling in the next few months but I'm not very enlightened on CG taxes...
thanks in advance
B Obama has already said he doesn't support the continuation of this 15% rate beyond I think 2012. He is acting relatively serious about that. So the rate will revert to 24% if you believe certain watchers, by 2013.
Certainly a great time to sell AAPL stock. Low capital gains taxes and $350 a share. Well done sir.
My exact thoughts.
Can you explain the capital gains situation? I have AAPL that I'm thinking of selling in the next few months but I'm not very enlightened on CG taxes...
Taxes, schmaxes. Look at behavior of Apple stock since the highs were reached. Flat to down. Now look at the rest of the market, which is similarly keeling over despite new index highs (made on LOW VOLUME). It's about to crash. GET OUT!
Can you explain the capital gains situation? I have AAPL that I'm thinking of selling in the next few months but I'm not very enlightened on CG taxes...
thanks in advance
See an accountant or do some research for yourself. Capital gains taxes are not that complicated.
Relying on an anonymous internet forum post to figure out how to handle your taxes would be insane.
Can you explain the capital gains situation? I have AAPL that I'm thinking of selling in the next few months but I'm not very enlightened on CG taxes...
thanks in advance
CG tax is low at this point. Probably the lowest it will ever be. If you have unrealized gains, it would be good to get it realized. You may never know, the Republicans could get crazy and agree to a CG tax hike.
See an accountant or do some research for yourself. Capital gains taxes are not that complicated.
Relying on an anonymous internet forum post to figure out how to handle your taxes would be insane.
Hey! Watch what you say! Some people spend their entire 6 month investing career buying and selling stocks using the advice of anonymous internet forum posts!
See an accountant or do some research for yourself. Capital gains taxes are not that complicated.
Relying on an anonymous internet forum post to figure out how to handle your taxes would be insane.
I'm not relying on any one source of information or opinion. Just interested in factual clarification.
And so to another question - what constitutes 'long term'?
I'm not relying on any one source of information or opinion. Just interested in factual clarification.
And so to another question - what constitutes 'long term'?
Disclaimer: I'm not a tax accountant or expert on this.
Long term are assets held over one year.
Essentially, short term capital gains are now taxed at the same rate as your ordinary income, which is based upon your total taxable income. (I think it used to be 24%). Long term capital gains carry no tax if you're in the 10% or 15% tax bracket and are taxed at 15% if you're in the 25% to 35% tax bracket. All these rates are scheduled to rise for the 2013 tax year, but Congress could change all this again.
Also, the gains are calculated not based only upon share price, but "cost basis", which includes all investment fees, etc.
CG tax is low at this point. Probably the lowest it will ever be. If you have unrealized gains, it would be good to get it realized. You may never know, the Republicans could get crazy and agree to a CG tax hike.
After having sold off most of his liquid stake in Apple, Mansfield holds vested options to buy 30,000 shares of Apple stock at $36.54, as well as 100,000 restricted stock units that will vest in 2014 should he stay with the company.
Nice incentive!
Being the socialist that I am I have to say these are absurd sums of money and in my mind no individual is worth that much. I don't want to open a political debate here on the merits of an unregulated free market, but it just strikes me a little odd that everybody thinks it is fair do's for people (whoever, wherever) to be handed many many millions of dollars for doing what I am sure they love doing, anyway.
But lucky him!
if upper management didn't have such outrageously high salaries and bonuses, we wouldn't have to pay so much for Apple products, and their employees could make more money, which would attract higher quality talent.
Good for him. He did a great job and to the shareholders! He's certainly earned it!