Apple executives receive stock incentives worth up to $31M
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Apple recently handed out restricted stock unit awards to its leadership team, with executives including SVP of Retail Angela Ahrendts, SVP of Worldwide Marketing Phil Schiller and others receiving 128,584 RSUs scheduled to vest through fiscal 2022.
A series of U.S. Securities and Exchange Commission filings on Tuesday revealed the incentive plan was doled out in two separate transactions. On Oct. 1, executives received 64,885 RSUs, while another batch of 63,699 units was applied on Oct. 15.
Alongside Ahrendts and Schiller, SVP of Internet Software and Services Eddy Cue, SVP of Software Engineering Craig Federighi, SVP and CFO Luca Maestri, SVP of Hardware Engineering Dan Riccio, SVP of Hardware Technologies Johny Srouji and COO Jeffrey Williams are up to see their RSUs vest over the next five years.
As noted in the filing, the Oct. 1 award is based on Apple's stock performance, or total shareholder return, tracked from the first day of the company's fiscal 2018 year to the last day of fiscal 2020. Up to 200 percent of the 64,885 RSUs may vest on Oct. 1, 2020, depending on AAPL performance.
The second set of RSUs are tenure based and will vest in equal thirds on April 1 of 2020, 2021 and 2022, contingent on continued employment.
If Apple stock meets expectations, and the executives stay on at their respective current positions, each team member stands to gain some 193,469 common stock units worth $31 million at today's stock prices.
In addition to the RSU incentive plan, three executives saw past bonuses convert into common stock last week. Srouji saw 34,039 RSUs vest on Oct. 15, with 17,077 units withheld by Apple to satisfy tax laws. Maestri logged 12,558 common stock conversions on the same day, of which 6,815 were withheld for taxes.
Finally, Senior Director of Corporate Accounting Chris Kondo was awarded 12,740 RSUs on Oct. 15. The filing notes 12.5 percent of Kondo's award will vest on April 15, 2018, with the remainder set to vest in semi-annual installments over a four-year period ending October 15, 2021. Kondo last week also saw 6,149 RSUs from previous awards convert into common stock.
Earlier this month, Apple's executive team netted nearly $10 million each after the vesting of RSUs from a 2014 award. The RSUs did not vest in full, however, as Apple's relative TSR performance did not place in the 85th percentile for companies listed on the S&P 500, a stipulation for vesting.