Apple Directors Bill Campbell and Millard Drexler Exercise and Sell Stock Options Worth $13.8 Million

by

Apple LogoApple directors Bill Campbell and Millard Drexler recently exercised and sold more than 42,000 Director Stock Options according to documents filed today with the SEC.

Drexler, the chairman and CEO of clothing retailer J. Crew, exercised a series of Director Stock Option grants from 2007, 2008, 2009 and 2010, for a total of 32,562 shares at exercise prices ranging from $113.62 to $202. He then turned around and sold the shares for roughly $449 each. Drexler netted roughly $9.5 million from the haul, the stock options being by far the most significant benefit of being on Apple's Board of Directors.

Campbell, who is chairman and the former CEO of intuit -- and the longest tenured director at Apple -- exercised a 10,000-share Director option grant at a strike price of $10.19. He then sold the stock for $440/share, for a net of $4.3 million.

Apple Non-Employee Directors typically make $50,000 per year in cash plus an additional stipend for serving on the various director committees. Tim Cook does not receive any additional pay for serving on the board.

In addition, under the Company’s Board of Directors Equipment Program, each Non-Employee Director is eligible to receive, upon request and free of charge, one of each new product introduced by the Company and is eligible to purchase additional equipment at a discount.

Top Rated Comments

(View all)
Avatar
95 months ago

That's a sweet ass deal; any new product released. True first world problems right there.


First world problem? What problem are you referring to?

A first world problem is when your Bentley is in the shop so you have to decide whether to take your Ferrari or your BMW to the premier of "Jobs."
Score: 2 Votes (Like | Disagree)
Avatar
95 months ago

As roninnder pointed out, there's no real problem there...

But if one of them starts complaining that their free computer was considered a taxable benefit and they had to pay taxes on it, now that would be a first world problem!


Sorry if you misunderstood and misread my post, but I didn't say there was a problem so much as I said "first world problems" to have that kind of cash and still get free ****. It wasn't aiming at anything else.
Score: 1 Votes (Like | Disagree)
Avatar
95 months ago

That's a sweet ass deal; any new product released. True first world problems right there.


As roninnder pointed out, there's no real problem there...

But if one of them starts complaining that their free computer was considered a taxable benefit and they had to pay taxes on it, now that would be a first world problem!
Score: 1 Votes (Like | Disagree)
Avatar
95 months ago

Apple Non-Employee Directors typically make $50,000 per year in cash plus an additional stipend for serving on the various director committees. Tim Cook does not receive any additional pay for serving on the board.

In addition, under the Company's Board of Directors Equipment Program, each Non-Employee Director is eligible to receive, upon request and free of charge, one of each new product introduced by the Company and is eligible to purchase additional equipment at a discount.

Article Link: Apple Directors Bill Campbell and Millard Drexler Exercise and Sell Stock Options Worth $13.8 Million (https://www.macrumors.com/2013/07/31/apple-directors-bill-campbell-and-millard-drexler-exercise-and-sell-stock-options-worth-13-8-million/)


A nice little perq to be sure, but just gravy to these directors, most of whom are well-heeled current or former executives.

.....Campbell, who is chairman and the former CEO of intuit -- and the longest tenured director at Apple -- exercised a 10,000-share Director option grant (http://www.sec.gov/Archives/edgar/data/320193/000118143113042044/xslF345X03/rrd386813.xml) at a strike price of $10.19. He then sold the stock for $440/share, for a net of $4.3 million.....

Article Link: Apple Directors Bill Campbell and Millard Drexler Exercise and Sell Stock Options Worth $13.8 Million (https://www.macrumors.com/2013/07/31/apple-directors-bill-campbell-and-millard-drexler-exercise-and-sell-stock-options-worth-13-8-million/)


These board members currently or previously involved with other tech companies, are always a bit of a double-edged sword: On the one hand they bring an incalculable amount of know-how and savvy to a company's boardroom, but on the flipside, with their intimate knowledge of the business plans of at least two companies, there is an undeniable potential for a conflict of interest, and by the time they excuse themselves from their tenure, the damage may have already been done.
Score: 1 Votes (Like | Disagree)
Avatar
95 months ago

QFT.
Probably means nothing, but why does it seem more and more head honchos are either leaving Apple or selling large amounts of stock options around the same time (coincidence or selling high)? Are Capital Gains taxes supposed to increase, thus selling now?

Recent S.V.P.'s officially out:

- Mansfield: Came and went, then, came back and now going. (too many years in and out)
- Forestall: well, that wasn't a surprise (2012)
- Browett: Ditto there (guy didn't last a year) (2012)
- Allison Johnson: Marketing communications VP left company after 6 years (2011)
- Richard Williamson: Fired by Eddie Cue over iOS "Maps" (2012)
- Mark Papermaster: S.V.P. of Devices Hardware Engineering fired for alleged iPhone 4 "antenna gate" (2010)

What indication, if any, is related to selling stock options? Does it mean analyst predictions/future trading spec's are low, thus selling high?

Selling stock options:

- Drexler: Former CEO of GAP/Sub-brands for years before Apple
- Bill Campbell: Never heard of him :o
- Peter Oppenheimer: Apple CFO recently sold $16.4 Million in AAPL Stock

Cook is CEO and head of retail, Ive is S.V.P. of Industrial Design and now iOS design.

My spidey senses are tingling.


You got a few thinks wrong there. For one, Mansfield hasn't left. He's in charge of "special projects." His removal from the executives team was his choice, as he didn't want to be distracted from the special wireless/semiconductors technology he's working on.

Many of the SVPs gone from the company that you listed were over failures or mistakes (Forstall, Browett, Williamson, Papermaster). To me, the firing of such individuals indicates a step forward for Apple because it shows the company's willingness to make changes. Most of these SVPs aren't a loss to the company.

As for selling stock, people do so in order to make money. Since this article focuses on board directors as opposed to actual company executives, I wouldn't be too concerned. In Oppenheimer's case (an Apple executive), he sold his stock under a schedule that dates back to November 2011, suggesting that his decision wasn't based on a belief of Apple's failure, especially back in 2011 when Apple was growing like crazy!

I think your spidey senses are a bit frayed. :D
Score: 1 Votes (Like | Disagree)
Avatar
95 months ago

What indication, if any, is related to selling stock options? Does it mean analyst predictions/future trading spec's are low, thus selling high?

No indications. Campbell's options are from 2004 and were likely going to expire soon if he didn't use them. Drexler's are from a number of years ago as well.

It's routine for executives to sell stock in their companies as a way to diversify their holdings. It's not smart business sense to hold stock in all one company.

Plus, all of these guys know that they have many, many more shares coming their way via RSU grants that have not vested. They aren't actually selling "all" their stock -- just the stock they are actually allowed to sell!

Also, executives (not directors) are now required to hold a multiple of their yearly base salary in Apple stock.
Score: 1 Votes (Like | Disagree)

Top Stories

First iPhone 12 Mini Hands-On Video Surfaces [Update: Video Pulled]

Wednesday October 28, 2020 1:21 pm PDT by
Apple's iPhone 12 mini and the iPhone 12 Pro Max aren't set to be available until November 13, but a Romanian YouTuber got his hands on the iPhone 12 mini and showed it off today, offering a size comparison between the iPhone 12 and the 12 mini along with going over some of the device's features. The iPhone 12 mini is identical to the iPhone 12 in design and functionality, but it has a...

Apple References Unreleased 2020 16-Inch MacBook Pro in Boot Camp Update

Monday October 26, 2020 8:42 am PDT by
Last week, Apple released an update for Boot Camp, its utility for running Windows on a Mac. While this update would typically be unremarkable, several of our readers noticed that the release notes reference an unreleased 2020 model of the 16-inch MacBook Pro. While this could easily be a mistake, the 16-inch MacBook Pro is nearly a year old, so it is certainly a worthy candidate for a...

After Mocking Apple, Samsung May Remove Power Adapter From Galaxy S21 Box

Tuesday October 27, 2020 4:29 pm PDT by
Samsung's Galaxy S21, coming in 2021, may not include a power adapter or headphones in the box, according to reports from Korean media sites highlighted by SamMobile. Rumors earlier this year also said that Samsung was considering removing these accessories from future smartphone models, but that didn't stop Samsung from mocking Apple for selling the iPhone 12 models without a power adapter...

Report: Apple Silicon iMac Featuring Desktop Class 'A14T' Chip Coming First Half of 2021

Tuesday October 27, 2020 4:14 am PDT by
The first iMac powered by Apple Silicon is set to arrive in the first half of next year and will feature a desktop class "A14T" chip, according to Chinese-language newspaper The China Times. Codenamed "Mt. Jade," Apple's first custom-made desktop processor will be twinned with its first self-developed GPU, codenamed "Lifuka," both of which are being produced using TSMC's 5-nanometer process, ...

iPhone 12 Ceramic Shield Still 'Scratches at Level 6 With Deeper Grooves at Level 7' in Mohs Hardness Test

Wednesday October 28, 2020 7:10 am PDT by
iPhone 12 and iPhone 12 Pro models feature a new Ceramic Shield front cover that is "tougher than any smartphone glass," according to Apple, but the displays on the devices still have similar scratch resistance as previous iPhones based on a new test. Zack Nelson today shared his much-anticipated iPhone 12 Pro durability test on his YouTube channel JerryRigEverything, and based on the Mohs...

2020 iPad Air vs. iPad Pro: Hands-On Comparison

Tuesday October 27, 2020 3:03 pm PDT by
Apple announced the new 2020 fourth-generation iPad Air in September, but the new tablets just started shipping out to customers last Friday. We picked one up and thought we'd do a hands-on comparison with the iPad Pro, which was last updated in March, because both tablets are about as powerful and share many similarities. Subscribe to the MacRumors YouTube channel for more videos. Design and ...

MagSafe Charger Only Charges at Full 15W Speeds With Apple's 20W Power Adapter [Updated]

Monday October 26, 2020 3:38 pm PDT by
Alongside the iPhone 12 and 12 Pro models, Apple introduced a new MagSafe charger that attaches to the magnetic ring in the back of the devices, providing up to 15W of charging power, which is double the speed of the 7.5W Qi-based wireless charging maximum. Apple does not provide a power adapter with the $39 MagSafe charger, requiring users to supply their own USB-C compatible option. Apple...

Apple Files Mystery 'Personal Computer' With Placeholder 'B2002' Name in Bluetooth Product Database

Tuesday October 27, 2020 12:36 pm PDT by
Last week, a listing appeared in the Bluetooth product database for an Apple product with a placeholder name "B2002" and a model number of "TBD." MacRumors was alerted to the listing by health and fitness tech website MyHealthyApple. The product is filed under the "personal computer" category, which Apple has used for previous Mac and iPad listings in the database, so it is hard to pinpoint...

Apple Releases First macOS Big Sur 11.0.1 Beta to Developers [Update: Public Beta Available]

Wednesday October 28, 2020 10:15 am PDT by
Apple today seeded a new macOS Big Sur 11.0.1 beta to developers for testing purposes, with the new beta replacing the existing macOS Big Sur 11 beta 10 update that was released two weeks ago. The macOS Big Sur beta can be downloaded through the Apple Developer Center and once the appropriate profile is installed, subsequent betas will be available through the Software Update mechanism in...

iPhone 12 Models Might Support Reverse Charging of Future Apple Accessories According to FCC Filing

Tuesday October 27, 2020 6:25 pm PDT by
iPhone 12 models could have an inactive wireless charging feature for accessories, according to an FCC filing discovered by VentureBeat's Jeremy Horwitz. In the filing, Apple said that 2020 iPhones support a wireless charging function that will seemingly be enabled for at least one future Apple accessory:In addition to being able to be charged by a desktop WPT charger (puck), 2020 iPhones...