Apple Execs are Cashing Out: Time to Worry?
While most Apple (NASDAQ:AAPL) investors are still dealing with the pain of a 41 percent stock slide over the past year, two company executives recently made a tidy sum by selling tens of thousands of their shares of Apple stock. According to U.S. Securities and Exchange Commission filings, Bruce Sewell and Jeff Williams each made millions by selling significant portions of their Apple stock on Monday.
Bruce Sewell, Apple’s general counsel and senior vice president of legal and government affairs, sold 37,172 shares for about $15 million. Similarly, Senior Vice President of Operations Jeff Williams sold 36,819 shares for around $15 million.
MacRumors said Sewell and Williams were each awarded 150,000 restricted stock units, or RSUs, in 2011. This was part of an incentive package to entice the executives to remain at Apple. Half of those RSUs vested on June 21, while the other 75,000 are scheduled to vest on March 21, 2016.
The two executives also hold thousands of additional shares of Apple stock. The SEC documents reveal the stock sales were made in accordance with SEC Rule 10b5-1, which dictates that executives must inform the SEC months in advance of their planned stock sale in order to avoid any insider trading improprieties.
CEO Tim Cook also holds a significant amount of Apple RSUs. On the same day that half of Sewell’s and Williams’s RSUs vested, Cook agreed to have 50 percent of his RSUs directly tied to specific performance targets for Apple stock. The move was likely intended to boost investor confidence in the Cupertino-based company, since there is no upside for Cook from the equity award modification.
Here’s how Apple traded over the past five days.
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