Form 4: Apple COO Sabih Khan Awarded 97,864 Restricted Stock Units

Apple's Chief Operating Officer, Sabih Khan, received two grants totaling 97,864 Restricted Stock Units, with vesting tied to both time and performance metrics.

Summary

• Sabih Khan, Apple Inc.'s Chief Operating Officer (COO), was granted a total of 97,864 Restricted Stock Units (RSUs) on September 28, 2025.
• The grant consists of two separate awards, each for 48,932 RSUs.
• The first grant of 48,932 RSUs is time-based and is scheduled to settle in three equal installments on April 1, 2028, April 1, 2029, and April 1, 2030.
• The second grant of 48,932 RSUs is performance-based and is scheduled to vest on October 1, 2028.
• The vesting of the performance-based RSUs is contingent on Apple's relative total shareholder return (TSR) from the first day of fiscal year 2026 to the last day of fiscal year 2028, with a potential payout ranging from 0% to 200% of the target number.

Sentiment

Score: 7

Explanation: The grant of Restricted Stock Units to a key executive like the COO is generally positive, indicating executive retention and aligning management's interests with long-term shareholder value, particularly with the performance-based component.

Positives

• The grant of Restricted Stock Units to the Chief Operating Officer aligns executive compensation with long-term shareholder interests.
• The inclusion of performance-based RSUs incentivizes management to achieve strong relative total shareholder return.

Risks

• The performance-based restricted stock units carry a risk for the recipient, as vesting is contingent on Apple's relative total shareholder return, meaning the actual number of shares received could be between 0% and 200% of the target.

Future Outlook

The performance-based Restricted Stock Units link a significant portion of the COO's future compensation to Apple's relative total shareholder return from fiscal year 2026 through fiscal year 2028, aligning executive incentives with long-term company performance.

Industry Context

The grant of Restricted Stock Units, including both time-based and performance-based components, is a common and widely accepted executive compensation practice within the technology industry, used to attract, retain, and motivate key leadership.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a primary component of executive compensation is standard practice among leading technology companies such as Microsoft, Alphabet (Google), and Amazon.
• The combination of time-based vesting for retention and performance-based vesting tied to relative Total Shareholder Return (TSR) is a common structure designed to balance long-term commitment with performance incentives, mirroring practices seen in peer companies.

Stakeholder Impact

• Shareholders: The performance-based component of the RSU grant directly links a portion of executive compensation to Apple's relative total shareholder return, potentially aligning management's efforts with shareholder value creation.

Next Steps

• Settlement of time-based Restricted Stock Units on April 1, 2028, April 1, 2029, and April 1, 2030.
• Vesting of performance-based Restricted Stock Units on October 1, 2028, subject to performance conditions.

Key Dates

Keywords

Apple, AAPL, Sabih Khan, Restricted Stock Unit, RSU, Executive Compensation, Insider Transaction, Form 4, Corporate Governance