Form 4: Apple CFO Luca Maestri Receives Stock Awards

Apple's CFO, Luca Maestri, was granted multiple restricted stock unit awards on September 29, 2024, with varying vesting schedules.

Summary

• Luca Maestri, Apple's Senior Vice President and CFO, received several grants of restricted stock units (RSUs) on September 29, 2024.
• These grants include 10,976 RSUs vesting in thirds on April 1, 2027, 2028, and 2029.
• Another grant of 32,926 RSUs vests 12.5% on April 15, 2025, and the remaining 87.5% in semi-annual installments over four years ending October 15, 2028.
• A third grant of 10,976 performance-based RSUs is scheduled to vest on October 1, 2027, with the actual number vesting between 0% and 200% based on Apple's total shareholder return from fiscal year 2025 to 2027.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively for aligning management and shareholder interests. The performance-based component adds a layer of positive incentive.

Positives

• The stock awards align the CFO's interests with those of shareholders.
• The vesting schedules encourage long-term performance and retention of the CFO.

Risks

• The performance-based RSUs are subject to market conditions and Apple's performance, which could result in a lower payout than the target.

Future Outlook

The vesting of the restricted stock units is contingent upon continued employment and, for some units, Apple's performance.

Industry Context

Stock-based compensation is a common practice for retaining and incentivizing key executives in the technology industry.

Comparison to Industry Standards

• Stock awards are a standard form of compensation for executives at large technology companies like Apple.
• Companies such as Microsoft, Google, and Amazon also use restricted stock units as part of their executive compensation packages.
• The vesting schedules and performance-based components are typical for aligning executive interests with long-term shareholder value.

Stakeholder Impact

• The stock awards align the CFO's interests with those of shareholders, potentially leading to better long-term performance.
• The vesting schedules encourage the CFO's continued employment, which is beneficial for the company's stability.

Key Dates

Keywords

restricted stock units, RSU, stock awards, Luca Maestri, Apple, executive compensation, vesting, performance-based