Someone got $38 million richer on Friday -- and it wasn't you.
According to Apple Insider (and an SEC filing dated April 27), Apple's iOs chief Scott Forstall cashed in more than 65,000 shares of AAPL last week, getting in on a price that ranged from $601 to $605 for the day. This range was below Apple's all-time closing high of $636.23 on April 9, but the sale came in the middle of a four-day dip that saw Apple close at $582 and change on Tuesday, its lowest since (erroneously fearful) pre-earnings jitters brought it to $560.
So -- better Friday than Tuesday, right? Forstall's official total came in at $38.7 million. On Wednesday afternoon, the stock was trading up more than 1%, at around $583.
Forstall's sale amounted to 95% of his holdings; he now has a mere 2,988 shares to his name. But if anyone wants to speculate that this might mean Forstall -- who Inside Apple author Adam Lashinsky said was most likely to replace current CEO Tim Cook after he moves on to non-Apple-producing pastures -- might be thinking of leaving, they should take a look at his RSUs still outstanding. If he sticks around until 2013, he'll get part of a 150,000-share package that will fully vest in 2016. Another 100,000 units are set to vest in 2014, according to an article in Fortune.
Forstall has been with the company since 1997. His annual salary is $700,000.
So it would likely be worth it for him to stick around, even if he doesn't ultimately become the next Apple king.
Apple's stock closed at $600 for the first time on March 19, just a little more than a month since it passed the $500 mark and eight months after hitting $400.
What do you think: Should Forstall have waited to cash in, or did he do so at the right time?
- Scott Forstall