Home > Finance and Stocks > Apple Executives and Board Interests NOT Aligned with Shareholders

Apple Executives and Board Interests NOT Aligned with Shareholders

Apple’s board and executives interests are NOT aligned with shareholders interests. Go look at the insider transactions and holdings.  Executives have blown out of their vested options as soon as they could.  10’s and 100’s of millions worth.  The top execs hold between zero, a few have several hundred and very few just a couple thousand shares.  Cook leads the pack with a paltry 13k shares.  Mansfield only 12k.  Forstall gone but only 3k.  Oppenheimer just 5k.  Phil Schiller a mere 257.  Eddy Cue holds 285.  Most of these major executives and board members have fewer shares than I do!  Why would any of them want a bigger dividend?  They don’t own any shares to make money off of that.

Here is a link to the Inside Holders: http://finance.yahoo.com/q/ir?s=AAPL+Insider+Roster

Until they start owning shares and not just options that they sell the moment they are vested they are not aligned with shareholders interests, period. This was also clear when they did not do a special dividend or even move up the Q1 dividend before 2012 taxes were going to be increased.  Why should they?  They don’t own any shares.

Their goal is to keep the money for salary and bonus (cash). Use buybacks to offset the billions in option dilution for their grants to hide that compensation as best as they can.

Until apple executives own 10’s of thousands or 100’s of thousands of shares their interests are simply not aligned and their actions have proven that.  The token $10.60 dividend was really an insult.  Company making 50/share in EPS and has 130B net cash.  C’mon.  Steve Jobs was paid $1 per year. All his comp came from the stock he accumulated and did not sell.  Greats like Jim Sinegal of Costco and Warren Buffett the same.

If you want your interests to be reflected than look for a management team that belly’s up to the bar with you and owns some significant shares.  I would like to see Apple executives and board get some real skin in the game.  Why don’t they have at least 1/3 of their net worth long in Apple stock?

Categories: Finance and Stocks
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