SEC


'SEC' Articles

Tim Cook Cashes in $3.6 Million in Stock as Respected Analyst Gives Him Passing Grades

Apple CEO Tim Cook sold 30,000 shares of Apple stock this week, valued at $3.6 million based on the company's stock price of $120 at the time of the transactions, according to a U.S. Securities and Exchanges Commission disclosure. The shares were sold as scheduled pursuant to Cook's predetermined trading plan. Cook retains 1,009,809 company shares worth over $121 million based on Apple's current stock price following the sale. A recent SEC filing revealed Cook was paid $8.7 million in 2016, which is $1.5 million less than he was paid in 2015. The decrease stems from Apple failing to meet its own target performance goals for both net sales and operating income in 2016, resulting in senior executives receiving only 89.5% of their cash incentives. However, upon reaching his fifth anniversary as Apple CEO last year, Cook cashed in nearly $137 million in previously-awarded stock bonuses tied to both his tenure and Apple's performance under his leadership. Accordingly, after bonuses, Cook actually earned roughly $145 million last year, his biggest payout yet. Yesterday, Apple analyst Neil Cybart opined that Cook and his inner circle are "doing what needs to be done in order to maintain Apple's relevancy," but he noted "there is room for improvement." He called out sporadic Mac and iPad updates, and slow progress with Siri, as two blemishes among others in its product strategy.In attempt to add a bit of relative context to this subjective grading: • Product Strategy: A- • Product Pipeline/R&D: A • Operations: B- • Marketing/Storytelling: C+ •

Tim Cook's Pay Was $1.5 Million Less in 2016 as Apple Missed its Own Performance Targets

Apple's annual shareholders meeting will be held on February 28 at 9:00 a.m. Pacific Time in the Town Hall building at its Infinite Loop headquarters in Cupertino, California, according to an SEC document filed electronically today. Admission is open to all shareholders of record on a first come, first served basis. A primary item of business on the agenda is to elect the Board of Directors to serve until the next annual meeting of shareholders in 2018, with Apple nominating the same eight individuals currently serving on its board: Tim Cook, Al Gore, Bob Iger, James Bell, Andrea Jung, Art Levinson, Ron Sugar, and Sue Wagner. The filing reveals Apple CEO Tim Cook made $8.7 million in 2016, down from $10.28 million in 2015 and $9.2 million in 2014. Cook's earnings included a base salary of $3 million, non-equity incentives of $5.37 million, and other compensation of nearly $378,000. Other named executives netted nearly $23 million apiece. Apple Executive Compensation in 2016 • Apple CEO Tim Cook: $8,747,719 • Apple CFO Luca Maestri: $22,803,569 • Apple retail chief Angela Ahrendts: $22,902,892 • Apple services chief Eddy Cue: $22,807,544 • Apple hardware engineering chief Dan Riccio: $22,807,544 • Apple general counsel Bruce Sewell: $22,807,544The filing did not disclose compensation for other key Apple executives such as design chief Jony Ive, operating chief Jeff Williams, software engineering chief Craig Federighi, and marketing chief Phil Schiller. Apple noted it did not meet its target performance goals for both net sales and operating income in 2016,

Apple's Chairman and Top Lawyer Cash in Combined $10M in Stock Bonuses

Apple chairman Arthur D. Levinson and general counsel Bruce Sewell recently sold approximately $7.6 million and $2.5 million worth of company shares respectively, according to SEC documents filed electronically this week. Levinson sold 70,000 shares of common stock on August 9 for an average price of $108.68, while Sewell disposed of 23,305 shares for an average price of $107.49 on August 5. The combined return was slightly over $10 million. Levinson, CEO of biotech company Calico, a subsidiary of Google parent Alphabet, has served as chairman of Apple's board of directors since November 2011. The former Genentech executive has served on the board since 2000, with CEO Tim Cook praising his "enormous contributions to Apple" and "incredibly valuable" insight and leadership. Sewell has served as Apple's general counsel, or chief lawyer in layman's terms, since September 2009. He oversees all company-related legal matters, including corporate governance, intellectual property, litigation and securities compliance, global security, and privacy, including a recent high-profile court battle with the FBI related to the intersection of national security and smartphone encryption. Apple's senior executives and directors are commonly awarded generous stock bonuses based on performance and tenure. Last August, Cook and services chief Eddy Cue received 560,000 and 350,000 restricted stock units respectively, worth a combined $93.8 million at the time. Later in the year, Apple's recently promoted hardware chief Johny Srouji was awarded nearly $10 million in restricted stock

Apple Finalizes $7 Billion Five-Part Bond Sale

Apple has raised $7 billion in debt through a five-part bond sale of both fixed and floating rate notes, according to the company's final pricing term sheet filed with the U.S. Securities and Exchange Commission on Friday. The five-part sale includes: $350 million maturing in 2019 with a floating interest rate based on three month LIBOR plus 14 basis points $1.15 billion maturing in 2019 with a fixed 1.1% interest rate $1.25 billion maturing in 2021 with a fixed 1.55% interest rate $2.25 billion maturing in 2026 with a fixed 2.45% interest rate $2 billion maturing in 2046 with a fixed 3.85% interest rate The transaction was underwritten by Goldman Sachs, J.P. Morgan Securities, MLPF&S, and Deutsche Bank Securities, among others. Apple held $231.5 billion in cash and marketable securities, partially offset by $68.9 billion in long-term debt, as of the fiscal third quarter, but a significant portion of that money is held overseas and would be subject to high U.S. taxes upon repatriation. By raising debt through bonds, Apple can pay for its U.S. operations at a much lower rate, particularly given its low-risk Aa1/AA+ bond credit rating. Apple typically uses the capital raised to fund dividend payments to shareholders and its share buyback program, which the company expanded to $175 billion in April. At the time, Apple said it expects to spend over $250 billion in cash under its capital return program by the end of March 2018. It also uses the capital for general corporate purposes, such as the repayment of earlier debt and

Apple to Raise Up to $12 Billion in Debt to Fund Capital Return Program

Apple has filed a preliminary prospectus supplement with the U.S. Securities and Exchange Commission as it prepares to issue a $10-$12 billion bond sale, reports CNBC. The debt raised will fund Apple's capital return program, including continued stock buybacks and dividend payments to shareholders, and general corporate purposes such as the repayment of debt and acquisitions. Apple will be offering floating rates that mature in 2018 and 2019, in addition to fixed rates that mature between 2018 and 2046. Apple's proposed 30-year bond due in 2046 may yield 2.15 percentage points more than similar-maturity Treasuries, according to Bloomberg. Apple is also planning to issue seven-year green bonds, typically used for clean energy and other sustainable initiatives, the report claims. Apple's capital return program currently runs through March 2017, as announced last year. The company has returned $153 billion in capital to investors of its $200 billion currently authorized, so the iPhone maker will almost certainly need to raise debt through this bond sale in order to continue stock buybacks and dividend payments before setting a new authorized amount as soon as April. Apple held $215.7 billion in cash and marketable securities, partially offset by $53.2 billion in long-term debt, as of the first fiscal quarter of 2016, but a significant portion of that money is held overseas and would be subject to high U.S. taxes upon repatriation. By raising debt through bonds, Apple can pay for its U.S. operations at a much lower rate, especially given its Aa1/AA+ bond credit

Apple's New Hardware Chief Johny Srouji Awarded Nearly $10 Million in Stock

Apple's newly promoted Senior Vice President of Hardware Technologies Johny Srouji was awarded 90,270 restricted stock units on October 5, 2015, according to a recent filing with the U.S. Securities and Exchange Commission. The RSUs awarded vest 12.5% in semi-annual installments over a four year period ending October 2019. Srouji now has a total of 217,305 RSUs and 101,881 common stock units, which together amount to just over $34 million at AAPL's current trading price of around $107 per share. The latest batch of 90,270 RSUs are currently valued at approximately $9.6 million. Apple often rewards high-level executives with RSUs based on their performance. In August, for example, Apple CEO Tim Cook and Senior Vice President of Internet Software and Services Eddy Cue received 560,000 and 350,000 RSUs respectively worth over $97 million combined. Apple retail chief Angela Ahrendts also received 113,334 RSUs as a signing bonus upon joining Apple in May 2014. Srouji was promoted to Senior Vice President of Hardware Technologies on December 17, as part of a larger executive team makeover that saw Jeff Williams promoted to COO and marketing chief Phil Schiller take over App Store leadership across all Apple platforms. Tor Myhren, chief creative officer at ad agency Grey, will also join Apple in early 2016 as Vice President of Marketing Communications. Srouji joined Apple in 2008 to lead development of the A4 chip for iPhone 4, and he now oversees silicon and hardware technologies, including batteries, application processors, storage controllers, sensors silicon,

Tim Cook and Eddy Cue Receive Combined $94 Million in Apple Stock

Apple CEO Tim Cook and Senior Vice President Eddy Cue received 560,000 and 350,000 restricted stock units respectively this week, worth a combined $93.8 million based on AAPL's closing price of $103.12 on Monday, according to a pair of filings with the U.S. Securities and Exchange Commission. Tim Cook and Eddy Cue at an Apple Store in 2014 (Image: Bloomberg) Cook was awarded with 280,000 performance-based restricted stock units in full based on Apple's performance relative to the other companies in the S&P 500 over a two-year period ending August 24. Apple needed to achieve a total shareholder return (TSR) of at least 41.36% to place in the top third of companies in the index, and Apple's TSR for the two-year period was 76.76%. Cook and Cue did not sell any of their RSUs, although 290,836 and 171,853 shares were withheld by Apple respectively to satisfy the minimum statutory tax withholding requirements on vesting of RSUs. Cue transferred his remaining 178,147 shares that vested to a family trust, and he has now been awarded all 700,000 shares granted to him on September 2, 2011. Cook has a remaining 4.76 million RSUs scheduled to vest as follows per the SEC filing: 700,000 RSUs on August 24, 2016; 700,000 RSUs on August 24, 2021; 1,680,000 vest in six equal annual installments commencing August 24, 2016; the remaining 1,680,000 are all subject to performance based vesting requirements and will potentially vest in six annual installments commencing August 24, 2016.Cook must remain employed at Apple to receive his unvested RSUs on their applicable vesting dates.

Apple Prices Bond Sale in Japan at ¥250 Billion

Apple has set a principal amount of ¥250 billion ($2.01 billion) for its bond sale in Japan per a final pricing term sheet published by the U.S. Securities and Exchange Commission on Thursday. The yen-denominated bonds have an interest rate of 0.350% and are set to mature on June 10, 2020. Interest is to be paid semi-annually on June 10 and December 10, commencing December 10, 2015. The global notes will be available for purchase by both domestic and foreign investors, with net proceeds to be used for general corporate purposes, including stock buybacks, dividend payments, funding for working capital, capital expenditures, acquisitions and debt repayment. The issue is being handled by Goldman Sachs International and Mitsubishi UFJ Securities