Apple Gives Employees $2,500 Bonuses After New Tax Law
Source: Bloomberg
Apple Gives Employees $2,500 Bonuses After New Tax Law
By Mark Gurman
Updated on
-- > Company giving bonuses to most global employees in stock units
-- > Bonus program follows Apple pledge to increase U.S. spending
Apple Inc. told employees Wednesday that its issuing a bonus of $2,500 worth of restricted stock units, following the introduction of the new U.S. tax law, according to people familiar with the matter.
The iPhone maker will begin issuing stock grants to most employees worldwide in the coming months, said the people, who asked not to be identified because they werent authorized to speak publicly. The move comes on the same day Apple said it would bring back most of its cash from overseas and spend $30 billion in the U.S. over the next five years, funding an additional technical support campus, data centers and 20,000 new employees.
Apple confirmed the bonuses in response to a Bloomberg inquiry Wednesday. The Cupertino, California-based company joins a growing list of American businesses that have celebrated the introduction of corporate-friendly tax law with one-time bonuses for staff. AT&T Inc., Comcast Corp., JetBlue Airways Corp. and Wal-Mart Stores Inc. also said they were giving bonuses.
In an email to employees reviewed by Bloomberg, Apple Chief Executive Officer Tim Cook said the move demonstrated his confidence in Apples future and that both full-time and part-time employees across all departments are elgible. Cook also said Apple would contribute twice the amount of each employees charitable donations, up to $10,000, through the end of the year. ... Apple workers below a senior-level known as director will be eligible to receive stock units. The company has more than 120,000 employees, including those at its retail stores.
Read more: https://www.bloomberg.com/news/articles/2018-01-17/apple-is-said-to-give-employees-2-500-bonuses-after-new-tax-law
Full disclosure: I own shares of APPL.
lapfog_1
(29,243 posts)because of the restrictions on the sale.
Also 120,000 x $2,500 is $300M which isn't even a rounding error on the amount they saved on the corporate taxes Apple saved by repatriating their foreign-held cash assets.
Hav
(5,969 posts)I have certainly no problem with the bonuses or creating new jobs in the case of Apple. But when the bonuses are compared to what the companies receive in return which results in adding more than one trillion to the national debt and contributes to the destruction of social systems, then it is exactly making the point of those criticizing trickle down economics: Just a small fraction of the money given to the companies or 1% comes back to improve the life of the average (for lack of a better word) person.
SergeStorms
(19,205 posts)discover that THEY have to pay income tax on those stock shares. Not to mention, Apple will get a great big tax deduction. Corporate America wins so many times on the corporate tax scam! Winning!
Iliyah
(25,111 posts)have done, laying off and or firing employees and closing businesses right after those wonderful bonuses and per Walmart raising the wage to $11.00 per hour (although they still work 39 hours not 40 and still get those Medicaid applications).
Simeon Salus
(1,161 posts)It's a pittance from the world's most valuable (and over valued) company.
Full disclosure myself: I've been a Mac User since 1990.
George II
(67,782 posts)...shot, and I don't even think that they deduct Social Security or Medicare.
But you know trump will be on twitter in the morning taking credit for it and milking it to death.
George II
(67,782 posts)former9thward
(32,165 posts)And investing 350 billion in the economy. Apple haters have been on the wrong side of history for how long now? About a generation.
http://www.chicagobusiness.com/article/20180117/NEWS08/180119908/apple-to-build-2nd-campus-hire-20000-in-350b-pledge
we can do it
(12,222 posts)rockfordfile
(8,709 posts)mahatmakanejeeves
(57,756 posts)I agree that there are a few threads, three I can think of, in LBN about Apple today. I started the first, but at the time I posted, there was no mention of bonuses. The news about the bonuses came out several hours later. I figured that was newsworthy in itself. I can easily combine this thread with my earlier one. Let me know, forum hosts.
Apple said in its press release that it is the biggest taxpayer in the United States. It dominates the S&P 500, and anyone who owns an index fund owns shares of Apple. That includes a lot of owners of IRAs and 401(k)s, and union pension funds, as brooklynite pointed out a few days ago. So the news affects a lot of people who might not think they're affected.
Full disclosure: I use a Dell at work. I own stock in MSFT too, so if Microsoft hands out bonuses to its workers, I'd have a financial stake in that development as well.
I also walk around with a Palm T|X, so if the Palm people get a bonus.... True story about the Palm. I love those things. I have a Sony CLIE too. Great devices.
I do not own a smartphone of any sort.
Massacure
(7,528 posts)It's not uncommon for FLSA-exempt positions in the tech industry to get a percentage of their salary in stock if the company meets its financial goals. They usually vest over three years and it's encouragement for employees not to bolt to another company for higher pay when there is a strong job market.
SergeStorms
(19,205 posts)from Eastman Kodak Company to exercise my stock options at $64 a share. I retired in 2002. Right now the stock is trading at around $4 a share. One one these days I might just jump at those shares though!
Loserman1962
(17 posts)There has been 2 stock splits in the late 1980s and both were 3:2
Your options would have a strike price of 1/2 what they are listed as.
Current Stock value is $10 so at 7% growth you should only have to wait another 18 years to earn a profit.
SergeStorms
(19,205 posts)it was in the spring of 1993, at the same time George Fisher became President of Kodak. He boldly predicted the price of Kodak shares would increase 30% within the next year. Of course the stock dropped precipitously after his 'pie-in-the-sky' statement, and never reached the asking price of around $64 a share again. I know a lot of people who jumped on that stock option at the time, and all of them lost money, some of them H-U-G-E sums of money. I could see the handwriting on the wall though, and digital photography was the future. Kodak - being the lumbering giant it had always been - was still putting all their eggs in Silver-Halide photography basket. Many of us were wondering, "what the hell are they thinking about"? I retired as soon as it was possible with time of service guidelines. By then people were being fired by the tens of thousands, and the company was on a fast track to becoming a footnote in corporate history. This same story was repeated by hundreds of companies around the U.S. at the time, which leads us to where we are today.......an economy devoid of manufacturing.
rainin
(3,011 posts)I thought repugs hated redistribution of wealth.
ileus
(15,396 posts)To Uncle Sam, my kids rely on public schools...and I like nice highways.
mahatmakanejeeves
(57,756 posts)DeminPennswoods
(15,299 posts)I don't believe bonuses are counted as income toward future social security and other benefits.