updated 07:30 pm EDT, Fri November 4, 2011
Apple SEC filing shows huge bonus payouts
Apple on Friday sent filings to the SEC that showed one of the larger bonus payouts to its senior vice presidents in recent memory. iOS head Scott Forstall, Hardware Engineering's Bob Mansfield, CFO Peter Oppenheimer, Worldwide Product Marketing lead Phil Schiller, general legal counsel Bruce Sewell, and operations head Jeff Williams all received share awards of 150,000 shares each. At current market values of about $400 per share, each will have made $60 million if they cashed in the same day.
Eddy Cue, senior VP for Internet Software, only got about 100,000 shares, or $40 million. He had only recently been promoted shortly after Steve Jobs' resignation and already received 100,000 shares as a reward.
In most cases, the executives can cash in by late June 2013, although Cue's follow-up share grant isn't eligible until September 2014.
CEO Tim Cook has already received one million shares in a two-stage grant that vests in 2016 and 2021.
The high payouts follow a succession of strong quarters and are partly a reward for performance. Apple likely has a separate motive, however, in giving executives an incentive to stay now that the iconic Jobs is absent. Although most if not all are likely to stay given company performance, it could prevent poaching or encourage executives to stay through rough periods.