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Craig Federighi and Dan Riccio Receive Stock Grants Worth $50 Million Each

Wednesday September 5, 2012 7:03 am PDT by Eric Slivka
Following their appointments to Apple's senior executive team, Craig Federighi and Dan Riccio have each been granted 75,000 restricted stock units by Apple. The grants, which were revealed in filings with the U.S. Securities and Exchange Commission covering Federighi and Riccio, are worth roughly $50 million apiece at today's stock price, although they do not convert into actual shares for some time.

According to the vesting schedule, Federighi and Riccio will each see 25,000 of their restricted stock units convert into actual shares on December 23, 2013, with another 25,000 following on April 23, 2015 and the final batch of 25,000 converting August 23, 2016.


Including actual shares as well as previous restricted stock unit grants that are converting to shares over time, Federighi holds roughly $97 million worth of stock rights at Apple's present share price, while Riccio's holdings would be worth about $89 million.

Grants of restricted stock units are typically issued both as bonuses for previous work as well as incentives to remain with the company. With the units vesting over time, recipients are generally required to remain employed with the company through each vesting date in order for those units to convert into redeemable shares.
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1080p
10 months ago
In B4 all of the "Occupy" folk show up and say "No one deserves to make that much money!!!!1111"
Rating: 8 Positives
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applesith
10 months ago

You don't have to be extreme to observe that they probably aren't worth $50M. There is a lot of talent in this world.


Yes there is a lot of talent. But it's a matter of useful and unique talent worth flipping the bill for. The $50M isn't just for the amount of money they have and will generate for Apple: it's more the opportunity cost of losing them to a competitor.
Rating: 5 Positives
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617arg
10 months ago
I don't know.....I look at some of these numbers and they begin to lose their meaning. After a certain point it almost doesn't matter. They will always be comfortable, so will their children and children's children, and further down the ladder of descendants......

If they are happy they will stay, if not they will either retire or go somewhere they feel they will be happier. If they are happy and just looking to shake down Apple with threats of leaving I'd rather see them go. Everyone can be replaced, and some fresh blood would be nice there at this point.
Rating: 4 Positives
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Rootus
10 months ago

In B4 all of the "Occupy" folk show up and say "No one deserves to make that much money!!!!1111"

You don't have to be extreme to observe that they probably aren't worth $50M. There is a lot of talent in this world.
Rating: 4 Positives
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jamojamo
10 months ago

You don't have to be extreme to observe that they probably aren't worth $50M. There is a lot of talent in this world.


And there is a lot of competition for the top talent that has the right drive and skills and is in the right area. So how do you say they aren't worth $50 Million? They could easily impact the bottom line or market capitalization over time for that amount. (Positively or Negatively)

Talent alone only gets you so far - ask Jamarcus Russell, Adam 'Pacman' Jones, Ralph Sampson, and many, many starving artists.

Bottom line is that none of us has a real say in what Apple is paying them but I don't begrudge them their 'opportunity' to succeed, nor does it impact my opportunities to succeed in my chosen endeavors.
Rating: 3 Positives
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NumberNine
9 months ago

In B4 all of the "Occupy" folk show up and say "No one deserves to make that much money!!!!1111"


The "occupiers" are just jealous whiners who want what others have.
Rating: 2 Positives
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bedifferent
10 months ago
My first thought upon seeing the picture:

"Welcome to Sprockets. I am your host, Dieter."
Rating: 2 Positives
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applesith
10 months ago
Well earned, gentlemen!
Rating: 2 Positives
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seetheforest
10 months ago

Yes there is a lot of talent. But it's a matter of useful and unique talent worth flipping the bill for. The $50M isn't just for the amount of money they have and will generate for Apple: it's more the opportunity cost of losing them to a competitor.


I don't understand this. If a large company like Yahoo was desperate enough they could certainly throw larger amounts of money at these guys to jump ship. Like others are saying these guys could EASILY impact the bottom line by that amount. Why is $50M a good price? Does it placate the human drive for wealth enough to satisfy the employees? If so, when did $50M become the benchmark for curbing human greed?

The arguments for executives being paid this amount of money make little sense because the value that executives are paid is completely arbitrary. So what if they get $50M? Microsoft could easily go over that price if they wanted to.

The fact is that you are right, these guys are talented and unique and driven. They do a great job because they love the work and they do deserve to get paid well for it. I don't see why $5M isn't enough to satisfy almost all of their needs and allowing them to pursue product development at a company that they love. The only company I know that is full of high functioning, creative individuals.

The idea that there is an arms race for talent just doesn't hold water when plenty of companies have positive balance sheets in the billions and could steal talent with $$$ at almost any price.
Rating: 1 Positives
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bad03xtreme
10 months ago
I'm Jelly, I would rock that hairdo for that kind of jingle...
Rating: 1 Positives

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