AAPL Stock: 97.67 ( + 0.64 )

Printed from

Jobs nets 120,000 Apple shares from options

updated 01:20 pm EDT, Thu August 16, 2007

CEO now owns 5.5M shares

Apple's CEO Steve Jobs netted more than $13 million in potential profit this week after exercising 120,000 options, according to an SEC filing. The options, which are the his sole source of compensation from Apple, were priced at $5.75 each, representing a total purchase price of $690,000 for the shares, worth somewhere in the neighborhood of $14 million when the options were exercised. Jobs now owns 5.5 million shares of Apple, which are worth about $620 million at the current price. According to reports, he has no intention of selling the newly acquired stock. Unfortunately for Jobs, shares of Apple are down almost $8 (over 6 percent) in mid-day trading today, hovering around $112.

In April of this year, the SEC today said that it would not file an enforcement action against Apple in connection with the agency's stock-options dating investigation. Following public claims that Apple's chief executive knew about backdated stock options, the SEC said that Apple's 'extraordinary' cooperation has won it points with the US regulatory agency and that the SEC will not seek formal action the Cupertino-based company, after the SEC filed two civil lawsuits against former Apple executives and agreed to a $3.5 million settlement with Anderson.

Earlier this month, a round of votes on shareholder proposals concerning executive compensation and options backdating at Apple show increasing investor desire for regulation of the way company managers are paid, and the methods by which they are awarded option grants. Although the measures failed to carry a majority, some of the proposals -- calling for links between stock performance and executive pay, a ban on options backdating, among others -- garnered 40 percent or more of the share votes, meaning they held strong appeal among investors other than those who originally broached the proposals.

by MacNN Staff





  1. bobolicious

    Joined: Dec 1969



    ...would seem quite a relative term... ;-)

  1. notehead

    Joined: Dec 1969



    Yes, we've hit a bit of a dip. But Jobs knows, perhaps better than anyone else, that AAPL will continue to grow strongly over the next year. The euphoria around AAPL certainly couldn't last forever, but there's also no reason to think that it won't be rekindled near or shortly after the holiday season.

  1. eldarkus

    Joined: Dec 1969



    hahahaha!!! SOOO true! ;)

  1. ZinkDifferent

    Joined: Dec 1969



    ...just means that each and every day is a good day to buy Apple shares.

  1. Bwa

    Joined: Dec 1969



    Whoever wrote this has no clue how stock options and taxes work. The fact that the stock is down makes this a _good_ time to exercise the options, as it minimizes the AMT that Jobs will owe (he will owe taxes on the difference of the strike price, in this case, $5.75, and the price the stock was when he exercised, ~$117). He will have to pay these taxes even if the stock sinks and never gets to $117 again.

Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines


Most Popular

MacNN Sponsor

Recent Reviews

Razer Taipan mouse

The list of gaming devices is growing larger with each passing day. A large number of companies have entered the gaming input arena, a ...

Cambridge Audio DacMagic XS

Every computer with a microphone or headphone port has one -- a digital to analog converter (DAC). There are nearly as many chipsets a ...

D-Link Wi-Fi Smart Plug

Home automation fans have been getting their fair share of gadgets and accessories in the last few years. Starting with light bulbs, a ...


Most Commented