Apple Inc. (NASDAQ:AAPL) revealed in its recent filing with the Securities and Exchange Commission that it has awarded 35,000 restricted stock units (RSUs) to each of its six top executives. At current market price, each executive will receive more than $19 million, according to Ben Lovejoy of 9to5Mac. RSUs are shares that can’t be traded immediately. The executives who received the bonus are Senior VPs Eddie Cue, Phil Schiller, Craig Federighi, Jeffrey Williams, Dan Riccio and Bruce Sewell.
Apple executives motivated to stick around until 2018
Each of the executives will receive RSUs worth $12 million immediately, but they can exercise them only if they remain at Apple Inc. (NASDAQ:AAPL) until at least April 2018. Of this, executives can exercise one-third of RSUs on April 1, 2016, another one-third on April 1, 2017, and the remaining at the same date in 2018. The other $7 million will depend on the performance of Apple stock. If shareholder returns are very good in 2015 and 2016, this $7 million could double to $14 million. In the worst case scenario, it will fall to zero.
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Did Apple award Sir Jony Ive as well?
Apple Inc. (NASDAQ:AAPL)’s design head Sir Jony Ive is also likely to have received a similar bonus. But the tech giant is not required to report his stock awards to the regulator. The RSUs ensure that the company’s senior executives are motivated enough to stay with the company for at least next four years, and help maximize earnings.
Apple Inc. (NASDAQ:AAPL)’s long-time CFO Peter Oppenheimer announced earlier this week that he is stepping down. Oppenheimer joined the Cupertino-based tech giant in 1996, and has been serving as its chief financial officer since 2004. He will now be joining Goldman Sachs Group Inc (NYSE:GS)’s board. CFO Luca Maestri, who joined the tech giant last year, is the new CFO.
Apple Inc. (NASDAQ:AAPL) shares inched up 0.19% to $533.39 in pre-market trading Thursday.