Form 4: Apple COO Sabih Khan's RSU Vesting Exceeds Target

Apple's COO, Sabih Khan, saw 92,403 restricted stock units vest, reflecting strong company performance relative to the S&P 500.

Summary

• Sabih Khan, Apple Inc.'s Chief Operating Officer (COO), reported the vesting of 92,403 restricted stock units (RSUs) on October 1, 2025.
• These RSUs were part of an award granted on September 25, 2022, with a target of 66,477 units, and vested based on Apple's Total Shareholder Return (TSR) performance relative to the S&P 500.
• Apple's TSR for the three-year performance period was 70.22%, ranking 162 out of 483 companies in the S&P 500, placing it in the 66.60th percentile.
• This performance resulted in 138.67% of the target RSUs vesting, leading to the settlement of 92,403 shares of common stock.
• To satisfy tax withholding requirements on the vesting, 49,390 shares were withheld by Apple at a price of $255.45 per share.
• Following these transactions, Sabih Khan directly beneficially owns 1,042,772 shares of Apple common stock and indirectly owns 31,632 shares through a family trust.

Sentiment

Score: 8

Explanation: The sentiment is highly positive due to Apple's strong Total Shareholder Return (TSR) performance, which led to a significant over-target vesting of executive restricted stock units. This indicates robust company performance and effective shareholder value creation over the three-year period.

Positives

• Apple's Total Shareholder Return (TSR) of 70.22% over the three-year performance period demonstrates strong financial performance.
• The company's TSR ranked in the 66.60th percentile among S&P 500 companies, indicating above-average performance.
• The vesting of 92,403 RSUs, which is 138.67% of the target award, signifies that Apple significantly exceeded its performance targets for executive compensation.

Negatives

• 49,390 shares were withheld by Apple to cover tax obligations, representing a disposition of shares from the COO's beneficial ownership.

Future Outlook

This filing does not contain explicit forward-looking statements or guidance, as it is a report of past insider transactions and performance-based compensation outcomes.

Industry Context

Apple's strong Total Shareholder Return (TSR) of 70.22% and its 66.60th percentile ranking within the S&P 500 indicate robust performance compared to its industry peers and the broader market during the three-year period. This suggests Apple maintained a competitive edge and delivered significant shareholder value, outperforming a substantial portion of the largest U.S. public companies.

Comparison to Industry Standards

• Apple's TSR of 70.22% significantly outpaced the median performance of S&P 500 companies, as evidenced by its 66.60th percentile ranking (162 out of 483 companies).
• The vesting of 138.67% of the target RSUs demonstrates that Apple's performance exceeded the threshold for 100% vesting (55th percentile) and moved substantially towards the 200% vesting cap (85th percentile), indicating superior performance against its compensation benchmarks.

Stakeholder Impact

• Shareholders: The strong performance leading to above-target RSU vesting suggests effective management and value creation, which is positive for shareholders.
• Employees (specifically COO): The COO's compensation is directly tied to and rewarded for the company's strong performance, aligning executive incentives with shareholder interests.

Key Dates

Recommendation

The filing indicates strong underlying performance by Apple, with its Total Shareholder Return (TSR) significantly outperforming the S&P 500 average, leading to an above-target vesting of executive restricted stock units. This demonstrates effective management and robust shareholder value creation over the performance period. Such positive performance metrics, directly tied to executive compensation, signal a well-managed company with continued potential for growth, making it an attractive investment.

Keywords

Apple, AAPL, Sabih Khan, COO, Restricted Stock Units, RSU Vesting, Insider Transaction, Form 4, Stock Ownership, Total Shareholder Return, S&P 500 Performance