Jobs pays $295M Tax Bill on Vested Shares

Steve Jobs let Apple Computer use 4.5 million of his recently vested 10 million stock shares to cover his tax liability earlier in March. His tax bill on the shares totaled US$295.7 million. According to AppleInsider, the procedure Mr. Jobs and Apple used to pay the taxes due is called a "net-share settlement," which lets Apple sell enough of the vested shares to pay the government.

Mr. Jobs is not selling any of his interest in Apple Computer, and continues to retain his remaining 5.5 million shares along with an addition 120,000 shares he earned in 1997 as a part of the director stock option plan. Apple intends to buy back and retire the shares used to pay the taxes and account for them as cash reductions, essentially reinvesting in itself.