MacNN | Eddy Cue joins Apple execs selling stock to avoid tax hike
Mac News Network View: Standard | Headlines | Categorized | Slim
Mac News Network
Mac News iPod News Reviews Forums
 

Desktop Headlines
Eddy Cue joins Apple execs selling stock to avoid tax hike
Tuesday, December 4, 2012 @ 8:56pm

Apple's Senior Vice President of Internet Software and Services Eddy Cue has become the latest executive to dispose of a significant quantity of AAPL stock, according to a filing at the SEC. Cue has sold off nearly all of his shares (though he will be receiving more soon) to the tune of $8.76 million, parting with 15,000 shares and holding (albeit temporarily) just 285 shares presently. Like a number of other Apple executives, Cue is likely selling the shares to avoid a almost-certain rise in the rate of capital-gains taxation taking effect in January.



The past month has seen a rush of executives selling some or most of their holdings to avoid any tax increases on such income. Less than a week ago, SVP of Technologies Bob Mansfield sold $20.38 million worth of stock, likely for the same reason. Regardless of which party primarily prevails in the showdown over the so-called "fiscal cliff," the default position (if a deal is unable to be struck) and the Democratic Party's position on this particular issue are the same: taxes on profitable sales of stock held longer than one year -- aka "long term" gains -- will go up from the current (and historically low) rate of 15 percent to 20 percent, with a special surcharge on some shareholders that will raise the effective rate to 23.8 percent. It should be noted that long-term gains for those in lower income tax brackets (10 to 15 percent) will also see a rise in capital-gains taxes, from the current zero percent to 10 percent. Short-term capital gains will continue to be treated like regular income, and taxed at the rate corresponding to the taxpayers' bracket. The stock Cue just sold was valued at $584 per share, creating a total gross that is sufficiently high such that Cue could save up to a million dollars in potential tax liability by selling now. Cue can expect to receive more shares as early as August of next year, when half of the 200,000 restricted stock units he has been awarded will vest. Most of the stock comes from awards for his promotion to SVP as well as some from a bonus awarded a year ago. All of the 200,000 shares will vest across the next three years (contingent on Cue staying with the company).

Comments on this Article
Print Friendly Version
Email to a Friend
Add MacNN to Your RSS Feeds
Buy from the Apple Store


Related Stories:

Today's MacNN Stories:

  • Apple Watch: plethora of details leak as public debut nears - 9:10 PM EST
  • Epic removes $19 monthly fee for access to Unreal Engine 4 - 9:06 PM EST
  • Back to the Mac: taking 'ctrl' of 'cmd' and other habit-shifting - 6:21 PM EST
  • Analysis: The state of Apple Pay, Samsung Pay in 2015 - 4:21 PM EST
  • Apple releases public beta of 10.10.3, including new Photos app - 3:54 PM EST
  • Daily Deals: Viewsonic monitor, 16MP Fujifilm camera, 6TB hard drive - 3:38 PM EST
  • Hands On: Sentinel 4 Dark Star (iOS) - 3:35 PM EST
  • Cintiq bolsters drawing pad line with Cintiq 13HD touch model - 3:12 PM EST
  • Briefly: Jackson promotion, shuttle drivers, supplier merger - 2:58 PM EST
  • Apple, IBM reveal three more 'MobileFirst for iOS' enterprise apps - 2:09 PM EST
  • Apple adds 'vehicles' to corporate documents in Swiss filing - 1:29 PM EST
  • Hands On: Rapid Reader (iOS) - 11:26 AM EST
  • MacNN Podcast Episode 4: Net Neutrality, Leonard Nimoy, Apple Watch - 9:59 AM EST
  • Nikon bolsters DSLR line with new 24.2MP D7200 - 9:44 AM EST
  • Microsoft Universal Foldable Keyboard works on iOS, Windows, Android - 9:19 AM EST
  • BlackBerry shows full Experience Suite for Android, iOS, Windows - 8:11 AM EST
  • Hands On: A Druid's Duel (Cross Platform) - 8:03 AM EST
  • Pointers: Pages 5.5.2, 2.5.2 (OS X, iOS) - 7:55 AM EST

    Today's iPodNN Stories:
  • Intel launches Atom x3, x5, x7 processors, new LTE solution - 6:43 PM EST
  • Gionee Elife S7 has 5.2-inch display, measures 5.5mm thick - 6:07 PM EST
  • Google+ to split into Photos, Hangouts - 5:12 PM EST
  • Panasonic Nubo camera surveils via 4G - 2:03 PM EST
  • Android Pay to serve as Google's answer to Apple Pay - 12:56 PM EST
  • No comments posted on this story yet. Please post yours.
    Your Comments
    In order to post comments, you must be a registered member of the MacNN Forums and logged in. Please login with your MacNN Forums username and password.

    MacNN Forums Login:

    MacNN Forums Password:

    Not a member of the MacNN forums? Register now for free.