Form 4: Apple Executive Deirdre O'Brien Awarded Restricted Stock Units

Apple's Senior Vice President, Deirdre O'Brien, received 87,802 restricted stock units, some of which are performance-based, according to a recent SEC filing.

Summary

• Deirdre O'Brien, a Senior Vice President at Apple, was granted 87,802 restricted stock units (RSUs) on September 29, 2024.
• 43,901 of these RSUs are time-based and will vest in three equal installments on April 1, 2027, April 1, 2028, and April 1, 2029.
• The other 43,901 RSUs are performance-based and are scheduled to vest on October 1, 2027.
• The actual number of performance-based RSUs that vest could range from 0% to 200% of the target amount, depending on Apple's total shareholder return between the start of fiscal year 2025 and the end of fiscal year 2027.
• Each RSU represents the right to receive one share of Apple common stock upon vesting.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management's interests with shareholders. The performance-based component adds a layer of positive incentive.

Positives

• The grant of restricted stock units aligns the executive's interests with those of the shareholders.
• The performance-based vesting encourages the executive to focus on long-term shareholder value creation.
• The vesting schedule provides a long-term incentive for the executive to remain with the company.

Risks

• The performance-based RSUs may not vest fully if Apple's total shareholder return does not meet the required targets.
• The value of the RSUs is subject to the fluctuations in Apple's stock price.

Future Outlook

The vesting of the restricted stock units is contingent on the executive's continued employment and, for the performance-based units, on Apple's total shareholder return.

Industry Context

The granting of restricted stock units is a common practice for compensating executives in the technology industry, aligning their interests with those of the shareholders and incentivizing long-term performance.

Comparison to Industry Standards

• Companies like Microsoft (MSFT) and Alphabet (GOOGL) also use restricted stock units as part of their executive compensation packages.
• The vesting schedules and performance metrics used by Apple are generally in line with industry standards for large technology companies.
• The use of total shareholder return as a performance metric is a common practice to align executive compensation with shareholder value creation.

Stakeholder Impact

• Shareholders may view the grant of RSUs positively as it aligns executive interests with company performance.
• Employees may see this as a positive sign of the company's commitment to its leadership.

Key Dates

Keywords

restricted stock units, RSU, executive compensation, stock options, performance-based, shareholder return, vesting, Apple, AAPL, Deirdre O'Brien