Follow up to my Post on Apple Executives and the Board of Directors
Here is why no special dividend or even a substantial dividend or even a buyback. No executive or board member is aligned with shareholders because they don’t hold any stock!
Tim Cook – 13.8k shares. Really? This is all Cook held onto? He dumped all his options when they vested
Eddy Cue – 285 shares. Dumped all his shares when they vested too. Nice to see these execs holding onto stock, right?
Phil Schiller – 257 shares held. Such conviction in his company? Dumped his 120k shares March 12 for 70 million. But hey he kept about 125 grand worth!
Daniel Riccio – 0 shares (not a typo). Dumped 14 millin worth of stock in ’12. Holds zilch
Peter Oppenheimer – 4793 shares owned. That’s not much. he dumped 150k shares for 90 million in march.
Robert Mansfield – 29548 shares owned. Dumped 50 million plus in stock.
Now I know why us shareholders never got a special dividend. Never got Q1 dividend moved up before the taxes went up. Why would any board member or executive want to give a dividend when they don’t own any shares? Steve Jobs held shares in Apple. Jim Sinegal held all his shares in Costco. Buffett never sold a share of Berkshire. It’s nice to have your interests aligned with management and the board. It’s not so great when your interests are very different.
Don’t believe Apple’s management or board is aligned with you, the shareholder. Just look at how much stock they hold and what they do the moment their options vest. They can’t sell them fast enough. So to them it does not really matter about dividends, tax efficiency, buybacks or the daily, weekly, monthly or annual stock price. Just build enough cash to keep your salary, bonuses, company and options coming.
Until these board members and executives start having more than half their net worth tied up in long apple stock they simply are not part of the team.
I’m going to hold on and hope for a pop on earnings so I can trim out of this position. I learned from the best investors in the world that if management is not riding the same bus you are that you need to get out of the bus fast.