Update: Apple grabs $5.3M of Angela Ahrendts' stock to pay taxes
Withholds half of retail chief's first chunk of vested shares to account for taxes due
Computerworld - Editor's note: An earlier version of this story said incorrectly that Ahrendts sold more than 8,000 shares of her first vested allotment of Apple stock.
Half of Angela Ahrendts' first allotment of stock grants vanished this week when Apple withheld them for tax purposes.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Ahrendts received 16,264 shares in Apple stock when it vested June 1. The filing was posted on the SEC's website Tuesday.
Apple took 8,331 shares that same day in a transaction valued at $5,273,523.
"Shares withheld by Registrant [Apple] to satisfy the minimum statutory tax withholding requirements on vesting of restricted stock units," the filing stated. "No shares were sold."
On her May 1 start date, Apple awarded Ahrendts, the former CEO of the Burberry clothing company, stock grants that, when fully vested, had a then-value of up to $78.5 million, assuming Apple makes undisclosed internal targets based on "total shareholder return" (TSR), a combination of share price appreciation and dividends.
Apple shares have appreciated by nearly 8% since then, closing yesterday at $647.35. Ahrendts' May 1 grants were worth a potential $84.6 million as of the closing bell Thursday.
Ahrendts was hired, analysts said last year, to revitalize and revamp Apple's retail business, and to expand its footprint in Asia, where the company has booked record sales but has only a few brick-and-mortar stores. Apple has just 10 stores in China, for example, and only 20 spread between China, Hong Kong and Japan.
Unlike her predecessors, Ahrendts will be responsible for not only Apple's physical stores, but also its online outlet.
On Thursday, Burberry published its annual report, noting that Ahrendts stepped down as its CEO on April 30, the day before she officially began working at Apple.
In that report, Burberry also revealed Ahrendts' salary and other compensation for the company's fiscal year that ended March 31.
Ahrendts' salary was £1.1 million ($1.8 million at Thursday's conversion rate) and she received a bonus of another £1.5 million ($2.5 million). She was also provided a £25,000 clothing allowance ($42,000) and a £18,000 ($30,000) car allowance, neither of which Apple provides its executives.
Gregg Keizer covers Microsoft, security issues, Apple, Web browsers and general technology breaking news for Computerworld. Follow Gregg on Twitter at @gkeizer, on Google+ or subscribe to Gregg's RSS feed . His email address is email@example.com.
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