bob mansfieldAs revealed in a regulatory filing yesterday, Apple senior vice president for hardware engineering Bob Mansfield on Monday exercised a set of stock options he has held for a number of years, immediately selling off the stock for a gain of nearly $12.5 million. Under the stock option program, Mansfield was eligible to purchase 30,000 of Apple stock at a price of $36.54 per share and immediately sold them off in several batches averaging $452.28 per share.

Mansfield's stock options dated back to an award made in June of 2005 as an enticement for him to stay with the company over the next several years. Those options fully vested by June 2009, but Mansfield has been holding onto them since that time as Apple's stock has continued to surge. With the options set to expire in June of this year and Apple's stock continuing to perform well, Mansfield undoubtedly thought that this would be an excellent time to exercise those options.

Mansfield has been a relatively active participant in Apple's stock option and grant award programs for its senior executives, regularly cashing in his shares while continuing to hold only a small amount of stock. With the quick sale of this week's shares obtained through the options, Mansfield owns only 501 shares of Apple stock.

His stock sales do not mean that he is not invested with the company, however, as Mansfield currently holds one restricted stock unit grant that would see him earn 100,000 shares in 2014 and a second grant of 150,000 shares that will vest in two equal portions in June 2013 and March 2016. All of those grants, which together would be worth roughly $114 million at Apple's current stock price, are contingent upon Mansfield remaining with Apple.

Top Rated Comments

rdowns Avatar
163 months ago
It's a good time to cash out. He knows with Steve gone, Apple can only go down in the long run and they're already massively over-valued as it is. They were $83 a share just a few years ago. Over $450 a share? Come on. It would be stupid to invest at that price (and yes there are people at work I know buying it because someone told them it was a $500 stock...yes it might hit $500 for awhile, but gaining $50 isn't worth the risk of it dropping hundreds like it did a few years ago when it went from around $300 to $83 almost overnight). And this time it will NOT come back because Apple is now run by the same types that destroyed it the first time around. Apple has a few more years of profitability based on current products like the iPhone and iPad, but without a visionary to keep the products coming, it's only a matter of time and the stock will start slipping LONG before the profits end (and you don't make a dime when it drops...you lose your shirt and everything else you put into it). Clearly, Bob Mansfield is fully aware of this as the hardware chief and he's taking it to the bank. Kudos to Bob. ;)

Did you even read the story before you posted? These options were set to expire in June. In other words, use them or lose them. And as stated in the story, he has been active in cashing out his options.

"Apple is now run by the same types that destroyed it the first time around" Where do people get this stuff?
Score: 18 Votes (Like | Disagree)
TurboMoses Avatar
163 months ago
No one can call him an idiot for making out with over 12 million, really.



His bro looks just as stoked:
Score: 10 Votes (Like | Disagree)
gmcalpin Avatar
163 months ago
One of his kids must be about to graduate high school. Time to pay for college! :)
Score: 10 Votes (Like | Disagree)
URFloorMatt Avatar
163 months ago
It's a good time to cash out. He knows with Steve gone, Apple can only go down in the long run and they're already massively over-valued as it is. They were $83 a share just a few years ago. Over $450 a share? Come on. It would be stupid to invest at that price (and yes there are people at work I know buying it because someone told them it was a $500 stock...yes it might hit $500 for awhile, but gaining $50 isn't worth the risk of it dropping hundreds like it did a few years ago when it went from around $300 to $83 almost overnight). And this time it will NOT come back because Apple is now run by the same types that destroyed it the first time around. Apple has a few more years of profitability based on current products like the iPhone and iPad, but without a visionary to keep the products coming, it's only a matter of time and the stock will start slipping LONG before the profits end (and you don't make a dime when it drops...you lose your shirt and everything else you put into it). Clearly, Bob Mansfield is fully aware of this as the hardware chief and he's taking it to the bank. Kudos to Bob. ;)
Spoken like someone who knows absolutely nothing about SEC regulations.
Score: 7 Votes (Like | Disagree)
fhall1 Avatar
163 months ago
It's a good time to cash out. He knows with Steve gone, Apple can only go down in the long run and they're already massively over-valued as it is. They were $83 a share just a few years ago. Over $450 a share? Come on. It would be stupid to invest at that price (and yes there are people at work I know buying it because someone told them it was a $500 stock...yes it might hit $500 for awhile, but gaining $50 isn't worth the risk of it dropping hundreds like it did a few years ago when it went from around $300 to $83 almost overnight). And this time it will NOT come back because Apple is now run by the same types that destroyed it the first time around. Apple has a few more years of profitability based on current products like the iPhone and iPad, but without a visionary to keep the products coming, it's only a matter of time and the stock will start slipping LONG before the profits end (and you don't make a dime when it drops...you lose your shirt and everything else you put into it). Clearly, Bob Mansfield is fully aware of this as the hardware chief and he's taking it to the bank. Kudos to Bob. ;)

Look at Apple's P/E ratio - or pretty much any other comparitive number of stock valuation and compare it to other tech firms....just how do you figure Apple is overvalued? Just because of a high share price? Is Berkshire Hathaway overvalued because the stock sells for $118,500 per share?
Score: 7 Votes (Like | Disagree)
GenesisST Avatar
163 months ago
I almost bought a block in 1997.

I bought Netscape instead.

:o

Hindsight is always 20/20, my friend. You probably did the best with the information you had at the time.

Heck, I would've started Facebook in 2002 if I'd known...
Score: 6 Votes (Like | Disagree)

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