In a letter to employees on Wednesday, Apple CEO Tim Cook announced a new program that extends restricted stock unit grants to all staff members, a strategy normally employed to incentivize work performance.
While exact details were not immediately specified, the program is expected to dole out much smaller RSU packages than those received as compensation by C-level executives, including Cook himself. A vesting schedule was not provided, though current performance based RSUs handed out to top Apple leadership usually convert in yearly intervals over a five-year period.
As noted by Cook in today's memo, a copy of which was obtained by 9to5Mac, Apple has traditionally leveraged RSUs to retain talent and incentivize high performance levels from executives, upper management and key skill positions.
This year, I'm excited to let you know that the Executive Team has created a new program for stock ownership through RSU grants. It's designed to reach employees who were not previously eligible, including many in our amazing retail and AppleCare teams.This new program extends eligibility to everyone not covered by other RSU programs, effectively making everyone who works at Apple eligible for an RSU grant. This is an unusual step, and very special -- just like our team.
At Apple, our most important resource -- our soul -- is our people. Along with our many progressive benefit plans, this is another way for us to say thanks. On behalf of the Executive Team, I'd like to thank you for your many contributions to Apple. Working with all of you is the privilege of a lifetime.
Apple provides an Employee Stock Purchase Plan in which workers can buy shares of AAPL at discounted rates, but has never before initiated company-wide RSU grants. Most recently, Cook saw 560,000 RSUs worth $58 million vest in August for meeting mandated performance goals.