Big April Fool’s payday for Apple COO Jeff Williams

Williams exercised Apple options worth $32 million on April 1. He’s still got nearly half a million beneficially owned shares in reserve.

apple jeff williams payday

(Click to enlarge)

  • A – Grant, award, or other acquisition
  • D – Sale (or disposition) back to the issuer of the securities
  • M – Exercise or conversion of derivative security
  • F – Payment of exercise price or tax liability by delivering or withholding securities
  • S – Open market or private sale of securities

My take: Williams is widely favored to succeed CEO Tim Cook, who told Kara Swisher on April 1 that he probably won’t stick around another 10 years.

7 Comments

  1. Romeo A Esparrago Jr said:
    Not an expert on Form 4 but does
    “ D – Sale (or disposition) back to the issuer of the securities” mean exactly that? That he sold the total 257k+ shares back to the issuer Apple?

    Howdy-How is that done? If I wanted to sell some of my AAPL shares at whatever market price, how can I sell it back directly to Apple, instead of some unknown open market buyer? Anyone done that?

    26
    April 6, 2021
    • Bart Yee said:
      I think because Apple issues the stock option from reserved stock privately, the company can immediately withhold sufficient stock at market price for tax purposes, essentially retiring the stock just issued & booking the employee’s tax withholding The separate sale of stock for realized gain can also be sold back to Apple in a private transaction at market price per predetermined rule 10b5-1 plans.

      No common stock dilution, clean, easy and most importantly, no hint of insider trading.

      14
      April 6, 2021
      • Bart Yee said:
        Williams withheld $15.2M worth of taxes.

        12
        April 6, 2021
      • Fred Stein said:
        Thanks Bart. Shall we infer that the above filing is just for the April 1 transaction and that Williams may own significantly more shares from prior transactions.

        8
        April 6, 2021
        • Bart Yee said:
          Hi Fred! Yes, according to this filing, Williams owned 489,490 shares in beneficial reserve (confirmed in the article) prior to the acquisition transaction. All the shares acquired were either sold for gain or for tax withholding.

          As of today’s close, Williams’ core holdings were worth $61.78M. April transaction gain was about $16.83M, presumably to be used for living expenses and/or diversified investments. Nice executive compensation. As usual, the better Apple does, the better he (and we) do.

          7
          April 6, 2021
        • Bart Yee said:
          One other thing to remember is that upper management have additional future stock options that vest if certain company or individual performance goals are met. I believe these do not include stock price goals since that is not under the company’s or management’s control.

          These plans are listed under executive compensation in annual reports or separate SEC filings. See Apple investor relations for additional information.

          8
          April 6, 2021
  2. Romeo A Esparrago Jr said:
    Awesome, thanks, Mr. Bart! Appreciate it & will read up on that rule 10b5-1.

    14
    April 6, 2021

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