Fortune reports that Scott Forstall – Apple’s Senior Vice President of iOS software has just sold 95% of his company shares.
Based on the SEC filing, Forstall – considered by many as CEO-in-waiting, sold 64,151 shares worth $38.7 million last Friday.
The shares were the remains of a 120,000-share retention bonus that was granted in 2008, vested last month and reduced by 55,849 shares on March 24 to pay taxes. Forstall still holds 2,988 Apple shares worth, at Friday’s closing price, $1.8 million.
But as Fortune points out, Forstall is not getting ready to leave the company by selling 95% of his company shares, as he still has a lot of incentive to stick around:
He has two more retention bonuses in the wings:
- 100,000 restricted stock units (RSUs) that were granted in 2010 and vest in 2014
- 150,000 RSUs granted in 2011 that vest in equal parts in 2013 and 2016, provided he stays with the company
Those RSUs, on top of Forstall’s $700,000 annual salary, are a powerful incentive to stick around. If Apple is headed to $1,000 per share within the next year, as some analysts suggest, Fostall could be looking at a windfall worth at least a quarter of a billion dollars.
If you think that’s a lot of money, let’s put things in perspective, Forstall runs the division that churns out software for iPhone and iPad that generates ($29 billion) almost three-fourth of Apple’s total sales ($39 billion). So it seems like a fair incentive for a company valued at $550 billion to retain one of its key employees.