New Apple retail chief John Browett receives $61M in stock rights
Apple's new senior vice president of retail, John Browett, has officially begun work at his new company, and was issued about $61 million worth of restricted stock.
Browett began his new position at Apple last week on April 20, according to a new filing with the U.S. Securities and Exchange Commission. The filing, first noted on Wednesday by MacRumors, reveals that Browett received 100,00 restricted stock units on Friday worth about $61 million.
The first 5,000 shares issued to Browett will fully vest on Oct. 20 of this year, and an additional 15,000 units will vest after his first year with Apple. His remaining shares will continue to vest in the amount of 20,000 each year on April 20.
It was first revealed in January that Apple had hired Browett as the company's new senior vice president of retail. He was previously the chief executive of European retailer Dixons, and he holds a degree in Natrual Sciences from Cambridge University and an MBA from Wharton Business School.
Browett replaced Ron Johnson, who was instrumental in the formation of Apple's retail business nearly 11 years ago. Johnson left the company last fall to become CEO of JC Penney.
Some pundits questioned Apple's hiring of Browett, noting that he is an outsider to the company's operations. But Apple Chief Executive Tim Cook was said to have defended the hire in an e-mail, noting that he talked to many people and Browett was "the best by far."
Browett began his new position at Apple last week on April 20, according to a new filing with the U.S. Securities and Exchange Commission. The filing, first noted on Wednesday by MacRumors, reveals that Browett received 100,00 restricted stock units on Friday worth about $61 million.
The first 5,000 shares issued to Browett will fully vest on Oct. 20 of this year, and an additional 15,000 units will vest after his first year with Apple. His remaining shares will continue to vest in the amount of 20,000 each year on April 20.
It was first revealed in January that Apple had hired Browett as the company's new senior vice president of retail. He was previously the chief executive of European retailer Dixons, and he holds a degree in Natrual Sciences from Cambridge University and an MBA from Wharton Business School.
Browett replaced Ron Johnson, who was instrumental in the formation of Apple's retail business nearly 11 years ago. Johnson left the company last fall to become CEO of JC Penney.
Some pundits questioned Apple's hiring of Browett, noting that he is an outsider to the company's operations. But Apple Chief Executive Tim Cook was said to have defended the hire in an e-mail, noting that he talked to many people and Browett was "the best by far."
Comments
Beats Dixons
Not problem with this except it should only be offered after a two year period to prove he is up to the job.
Hopefully, he will use some of the money to find a new barber.
Seems excessive and unnecessary. His predecessor would of probably deserved it but he built the operation from the ground up and contributed heavily to share-holder value. This guy is coming in and pretty much avoiding hitting an ice burg which isn't an extremely hard skill in extremely limited supply.
I hope his fellow Brit Jony Ive is this well compensated. At least he has a track record at Apple that would deserve it. What track record does Browett have? I have a hard time believing Apple would need to throw that much $$ at someone in order to get them to come work for them.
Have to agree with the other posters: $61MM is nuts.
I had the urge to say that natrual is misspelt, but it's English. Surrrrrre does look funny on this side of the pond, though! :B
His normal salary should be sufficient.
A plus is that it will be difficult to bribe him, with this kind of money.
J.
Quote:
Originally Posted by malax
Have to agree with the other posters: $61MM is nuts.
It is nuts and it is wrong on every level (except for him, of course). If he screws up, under performs or has problems with the Apple culture he could be gone in no time. This kind of thing happens all the time. Top executives are in a position to negotiate these terms and basically insure themselves against failure. I think the message it sends is basically a big **** You to everybody else and I wish government would step in and regulate.
Edit: I notice that my Fu@k You (spelled the proper way) was modified as above by AI. Really AI? We need to be language policed? Oh, and while I am at it, this new forum update really sucks on the iPhone. The last one did, too, but this one is even worse. Hrmph!
What exactly is he being rewarded for? He's done nothing yet to earn this level of reward. I agree with those saying that he should have been in the job for at least 2 years before getting any shares.
Quote:
Originally Posted by taxman
…I wish government would step in and regulate.
For what purpose? This 'government should step in and regulate' thing is always what I agree with over 'government should step in and take over', but regulation for its own sake makes no sense.
If the guy sucks, he sucks. He'll be fired and replaced and the money will be dealt with.
Quote:
Originally Posted by AppleInsider
...reveals that Browett received 100,00 restricted stock units on Friday worth about $61 million.
How many shares?
Quote:
Originally Posted by Tallest Skil
For what purpose? This 'government should step in and regulate' thing is always what I agree with over 'government should step in and take over', but regulation for its own sake makes no sense.
If the guy sucks, he sucks. He'll be fired and replaced and the money will be dealt with.
Dealt into his checking account at the expense of shareholders who hired him to do a job he would of failed at. The slow trend towards stock based compensation has been a disaster and should be reigned in.
What exactly is he going to do besides open new stores? Is there a new major remodel on the horizon or system wide change? They are ruling the world and have no need to change the formula. So, is he a $61mil place holder?
Quote:
Originally Posted by malax
Have to agree with the other posters: $61MM is nuts.
It is spread over a number of years so it is based on performance. If he gets canned he doesn't get all the money.
Quote:
Originally Posted by mstone
It is spread over a number of years so it is based on performance. If he gets canned he doesn't get all the money.
His remaining shares will continue to vest in the amount of 20,000 each year on April 20.
It's less than 5 years till he gets all of it, not really that long.
Quote:
Originally Posted by mstone
It is spread over a number of years so it is based on performance. If he gets canned he doesn't get all the money.
No, but even if he does get all the money, what will he of done that is worth $61 million. Regardless of one's opinions on regulation vs. deregulation, free markets, fair trade vs. free trade, etc., etc.... does anyone really think this guy is in a position within the company that will add $61 million dollars in value to it?
Quote:
Originally Posted by TheDisco
What exactly is he going to do besides open new stores? Is there a new major remodel on the horizon or system wide change? They are ruling the world and have no need to change the formula.
And it's that kind of thinking that is exactly un-Apple.
If you don't like how much money he's getting, think of it as a research grant. He's being paid to be there, learn everything about it how it works now, and research what made it work and why. When the time comes that a change DOES need to be made, he'll be set and it'll be a piece of cake, provided he has actually done his job.
Quote:
Originally Posted by Tallest Skil
And it's that kind of thinking that is exactly un-Apple.
If you don't like how much money he's getting, think of it as a research grant. He's being paid to be there, learn everything about it how it works now, and research what made it work and why. When the time comes that a change DOES need to be made, he'll be set and it'll be a piece of cake, provided he has actually done his job.
When it comes to their retail model it is VERY Apple. Its not the same game as the hardware side. There hasn't been a major change in Apple stores beyond the POS systems since they opened over a decade ago. Do you think Apple is really going to be rocking the boat in the next five years by the time his shares vest? If so, I have a bridge to nowhere to sell you...
Quote:
Originally Posted by paxman
It is nuts and it is wrong on every level (except for him, of course). If he screws up, under performs or has problems with the Apple culture he could be gone in no time. This kind of thing happens all the time. Top executives are in a position to negotiate these terms and basically insure themselves against failure. I think the message it sends is basically a big **** You to everybody else and I wish government would step in and regulate.
Edit: I notice that my Fu@k You (spelled the proper way) was modified as above by AI. Really AI? We need to be language policed? Oh, and while I am at it, this new forum update really sucks on the iPhone. The last one did, too, but this one is even worse. Hrmph!
Wow! You want the government to step in and regulate Apple's hiring practices, and then you complain when AI steps in and regulates your post? Do you see the irony here?
Quote:
Originally Posted by Tallest Skil
And it's that kind of thinking that is exactly un-Apple.
If you don't like how much money he's getting, think of it as a research grant. He's being paid to be there, learn everything about it how it works now, and research what made it work and why. When the time comes that a change DOES need to be made, he'll be set and it'll be a piece of cake, provided he has actually done his job.
So they're giving someone $60M to learn about how Apple's retail model works? Hey they could have called me. I'd have taken that 'research grant' for a lot less than $60M. :-D