Apple’s Retail Chief Angela Ahrendts and Top Lawyer Bruce Sewell Each Sell Over $10 Million in Stock

Apple's retail chief Angela Ahrendts and top lawyer Bruce Sewell each sold over $10 million in company stock over the past week, according to a pair of disclosures with the Securities and Exchange Commission.


Pursuant to her trading plan adopted in February, Ahrendts sold 75,000 shares of Apple stock between May 4 and May 8, netting nearly $11.1 million based on the weighted average sale price of the five transactions. Ahrendts still owns 103,116 shares in Apple following the sale, worth nearly $16 million.

Sewell sold 67,500 shares of Apple stock in multiple transactions on May 5, netting just over $10 million based on the weighted average sale price. Sewell still owns 141,325 shares in Apple following the sale, worth nearly $22 million.

Ahrendts has served as Apple's Senior Vice President of Retail since 2014, overseeing the company's physical and online storefronts. Under her leadership, Apple has been renovating several of its stores, partly in an effort to turn them into community gathering places rather than just sales floors.

Sewell has served as Apple's General Counsel since 2009, overseeing all legal matters, including corporate governance, intellectual property, litigation and securities compliance, global security, and privacy. He came into the spotlight last year twice during separate battles with the FBI and Spotify.


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Apple Raises $10 Billion in Debt Ahead of Trump’s Plans for Tax Holiday

Apple-BondsApple has raised $10 billion in debt through a nine-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 nine-part sale includes:
  • $500 million maturing in 2019 with a floating interest rate based on three month LIBOR plus 8 basis points
  • $500 million maturing in 2020 with a floating interest rate based on three month LIBOR plus 20 basis points
  • $1 billion maturing in 2022 with a floating interest rate based on three month LIBOR plus 50 basis points
  • $500 million maturing in 2019 with a fixed 1.55% interest rate
  • $1 billion maturing in 2020 with a fixed 1.9% interest rate
  • $1.5 billion maturing in 2022 with a fixed 2.5% interest rate
  • $1.75 billion maturing in 2024 with a fixed 3% interest rate
  • $2.25 billion maturing in 2027 with a fixed 3.35% interest rate
  • $1 billion maturing in 2047 with a fixed 4.25% interest rate
Apple held $246.1 billion in cash and marketable securities last quarter, but around 94% of that money is held overseas and would be subject to high U.S. taxes upon repatriation—something U.S. President Donald Trump plans to change. In the meantime, 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. Last quarter, Apple returned almost $15 billion to investors through dividends and buybacks. $201 billion of $250 billion capital return program has been completed. The company also uses the capital for general corporate purposes, such as the repayment of earlier debt and acquisitions.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Tags: bonds, SEC

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Apple Raises $10 Billion in Debt Ahead of Trump’s Plans for Tax Holiday

Apple-BondsApple has raised $10 billion in debt through a nine-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 nine-part sale includes:
  • $500 million maturing in 2019 with a floating interest rate based on three month LIBOR plus 8 basis points
  • $500 million maturing in 2020 with a floating interest rate based on three month LIBOR plus 20 basis points
  • $1 billion maturing in 2022 with a floating interest rate based on three month LIBOR plus 50 basis points
  • $500 million maturing in 2019 with a fixed 1.55% interest rate
  • $1 billion maturing in 2020 with a fixed 1.9% interest rate
  • $1.5 billion maturing in 2022 with a fixed 2.5% interest rate
  • $1.75 billion maturing in 2024 with a fixed 3% interest rate
  • $2.25 billion maturing in 2027 with a fixed 3.35% interest rate
  • $1 billion maturing in 2047 with a fixed 4.25% interest rate
Apple held $246.1 billion in cash and marketable securities last quarter, but around 94% of that money is held overseas and would be subject to high U.S. taxes upon repatriation—something U.S. President Donald Trump plans to change. In the meantime, 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. Last quarter, Apple returned almost $15 billion to investors through dividends and buybacks. $201 billion of Apple's $250 billion capital return program has been completed. The company also uses the capital for general corporate purposes, such as the repayment of earlier debt and acquisitions.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Tags: bonds, SEC

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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.

tim_cook_hands_raised
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+
• Culture: B+
• Public Face: A+
• Financials: B
In related shareholder news, the world's largest asset manager BlackRock has increased its stake in Apple and now holds 6.1% of outstanding shares in the company, up from 5.7% a year ago. Its 322,683,504 shares are valued at over $38.7 billion based on Apple's current stock price.


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Tim Cook Earned $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.

tim_cook_hands_raised
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: $22,807,544

Apple noted it did not meet its target performance goals for both net sales and operating income in 2016, resulting in the senior executives receiving only 89.5% of their cash incentives. In 2015, the executives received 100% of their cash incentives as Apple met its performance goals for sales in that year.

Tags: Tim Cook, SEC

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