Apple revealed Friday that it has given its top executives large stock grants in exchange for a commitment to stay at the company through most of the company’s fiscal 2016. In SEC filings, the company said that it gave grants worth approximately US$60 million to six of its top execs, while a seventh, newly minted senior vice president Eddy Cue, got a grant worth some $40 million.
Most of Apple’s Top Execs Get a Big Bonus
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The executives include Phil Schiller, Senior Vice President— Worldwide Product Marketing; Scott Forstall, Senior Vice—iOS Software; Bob Mansfield, Senior Vice President—Hardware Engineering; Bruce Sewell, Senior Vice President and General Counsel; Peter Oppenheimer, Senior Vice President and Chief Financial Officer; and Jeff Williams, Senior Vice President—Operations.
Each of those executives was given a grant of 150,000 “restricted stock units” (which effectively means shares) that vest over the next four years. 50% vest on June 21st, 2013, and the remaining 50% on March 21st, 2016, with the caveat that they remain working at Apple through the vesting period.
Eddy Cue, who was recently promoted to Senior Vice President—Internet Software and Services, up from a regular vice president, was given 100,000 restricted stock units with a 25% vestment schedule on September 21st, 2014. The remaining 75% vest on September 21st, 2016, with the same caveat that he remain at Apple.
With today’s closing price of $400.24 per share of AAPL, those 150,000 share grants are worth a bit more than $60 million, while the 100,000 share grant is worth a little more than $40 million.
This should be seen as a relief to investors and shareholders who might have been worried that some of Apple’s top execs might leave the company after the passing of Steve Jobs, the iconic leader who assembled them in the first place. Mr. Jobs died on October 5th of this year after a long fight with cancer.
“Our executive team is incredibly talented and they are all dedicated to Apple’s continued success,” Apple said in a statement. “These stock grants are meant to reward them down the road for their hard work in helping to keep Apple the most innovative company in the world.”
Of the nine executives listed on Apple’s Executive Profile webpage, only Tim Cook and Jony Ive were not included in Friday’s stock grant filings. Tim Cook is Apple’s newly appointed CEO, and he got his own grant of one million restricted stock grants in August as part of his $400 million deal to take over Apple from the late Steve Jobs.
If you’re wondering who Mr. Ive is, he’s the one executive who is not smiling in Apple’s exec lineup. The Mac Observer enhanced the screenshot image below to help you find him.
To be serious however, Jonny Ive is the design guru at Apple, and he was known as Steve Jobs’s partner in crime when it came to turning out one gorgeous product after another. While he wasn’t listed in today’s SEC filings, CNet pointed out that he although he is a senior vice president, Mr. Ive doesn’t fall under the SEC’s guidelines for reporting grants to directors, officers, and principal stockholders.
*In the interest of full disclosure, the author holds a tiny, almost insignificant share in AAPL stock that was not an influence in the creation of this article.