Form 4: Apple CFO Luca Maestri Settles Restricted Stock Units, Gains 127,282 Shares

Apple's CFO, Luca Maestri, settled 127,282 restricted stock units (RSUs) into common stock after a three-year performance period, with a portion of shares withheld for tax purposes.

Summary

• Apple's CFO, Luca Maestri, had 127,282 restricted stock units (RSUs) vest and convert into common stock on October 1, 2024.
• These RSUs were part of an award granted on September 26, 2021, with the vesting amount dependent on Apple's total shareholder return (TSR) relative to other S&P 500 companies over a three-year period.
• Apple's TSR was calculated to be 57.88% over the performance period, ranking 92nd out of 485 companies in the S&P 500, placing it in the 81.20th percentile.
• The vesting schedule was structured such that if Apple's TSR was at or above the 85th percentile, 200% of the target RSUs would vest, and if it was at or above the 55th percentile, 100% would vest.
• Because Apple's TSR was in the 81.20th percentile, 127,282 RSUs vested, which was a portion of the target number of 68,065 RSUs.
• A total of 67,977 shares were withheld by Apple to cover tax obligations related to the vesting of the RSUs, with no shares being sold by Mr. Maestri.

Sentiment

Score: 8

Explanation: The document reflects a positive outcome for the executive due to strong company performance, which is generally viewed favorably by investors.

Positives

• Apple's strong TSR performance over the three-year period resulted in a higher than target vesting of RSUs for the CFO.
• The vesting of 127,282 RSUs indicates that Apple's performance was well above the 55th percentile threshold.
• The document shows that the CFO is aligned with shareholder interests through performance-based compensation.

Negatives

• The document does not indicate any negative aspects of the transaction.

Risks

• There are no specific risks mentioned in this document.

Industry Context

This filing is a routine disclosure of executive compensation in the form of stock awards, which is common practice among publicly traded companies. The vesting of RSUs based on performance metrics is a standard method to align executive interests with shareholder value.

Comparison to Industry Standards

• Performance-based RSU vesting is a common practice among S&P 500 companies, including technology peers like Microsoft (MSFT) and Alphabet (GOOGL).
• The vesting schedule, with thresholds at the 25th, 55th, and 85th percentiles, is a typical structure for performance-based equity awards.
• Apple's TSR of 57.88% over three years is a strong performance compared to the average S&P 500 company, which would typically be in the 30-40% range over a similar period.
• The fact that Apple's performance resulted in a vesting of 127,282 RSUs, compared to the target of 68,065, indicates that Apple's performance was significantly above the median of the S&P 500.

Stakeholder Impact

• The vesting of RSUs aligns the CFO's interests with those of shareholders, as his compensation is tied to the company's performance.
• The strong TSR performance benefits shareholders through increased stock value.

Key Dates

Keywords

Restricted Stock Units, RSU, Total Shareholder Return, TSR, Vesting, Stock Compensation, Luca Maestri, Apple, AAPL, CFO