Apple has long used stock grants, as a way to lock crucial executives into their positions at the company for certain amounts of time. Last week the Cupertino big-tech firm awarded more than $122 million in stock compensation to members of its executive team.
The restricted stock grants are being used to reward Apple’s top-line of executives, as well as make sure they don’t leave the company before the vest date, set at March 24, 2012. If by chance any of the execs leave their high level position at Apple, they will be forfeiting their right to claim shares.
The restricted shares were based on Apple’s (Nasdaq: AAPL) closing price at the end of Monday, September 29, 2008 which was ironically the lowest it has been in years. Apple shares suffered a steep 18% sell-off and the entire company lost nearly $20 billion off its market cap. However, from a transparent point-of-view, using Monday’s closing price amidst the degrading economic situation is a good move.
In total the combined market value of the nine grants given was $122,101,600. Nine grants were issues with a range of 60,000 to 200,000 shares.
The grants were issued as follows:
• Chief Operating Officer, Timothy D.Cook: 200,000 shares valued at $21,052,000
• Senior Vice President of Retail, Ron Johnson: 150,000 shares valued at $15,789,000
• Senior Vice President of Worldwide Product Marketing, Phil Schiller: 120,000 shares valued at $12,631,200
• Senior Vice President of Software Engineering, Bertrand Serlet: 120,000 shares valued at $12,631,200
• Senior Vice President of Mac Hardware Engineering, Bob Mansfield: 120,000 shares valued at $12,631,200
• Senior Vice President of Industrial Design, Jonathan Ive: 120,000 shares valued at $12,631,200
• Senior Vice President of iPhone Software, Scott Forstall: 120,000 shares valued at $12,631,200
• Senior Vice President, General Counsel and Secretary: 60,000 shares valued at $6,315,600
