Apple's newly-minted top executives will have good reason to stick around in the form of a hefty stock bonus that finishes vesting in four years.
New filings with the U.S. Securities and Exchange Commission show that Craig Federighi, Apple's senior vice president of Mac Software Engineering, and Dan Riccio, Apple's senior vice president of Hardware Engineering, were both given 75,000 shares of company stock as part of their promotions last week.
Those grants, currently worth $50.62 million, vest at three separate points over the next four years. The first batch of 25,000 vests December 23, 2013, with the other two chunks of 25,000 vesting April 23, 2015 and August 23, 2016 respectively.
The big potential pay days are not unusual for Apple's top brass. The long-term vesting of the shares among some of Apple's top executives provides incentive to stay with the company and improve its performance in return for a big payoff when those shares vest.
Last November Apple doled out 150,000 shares each to most of its senior vice presidents, short of SVP Eddy Cue, who received a slightly smaller 100,000-share bonus, and design guru Jonathan Ive, who is an SVP, but does not fall under the SEC's section for directors, officers, and principal stockholders. At the time that worked out to just over a $60 million payday to those who got the 150,000 shares, with Cue's cut coming out to a little more than $40 million.
Also of note is a sale of 25,000 shares of stock by Apple board member Mickey Drexler worth about $16.6 million. Drexler has been a director on Apple's board since 1999 and is currently the chairman and chief executive of the J.Crew Group.