oaky....i was wrong, apparently, once exercised, he is still in possession of the 59k shares. ...thank you for the evidence. keep in mind, these had to be held for a period of ten (10) years once granted by steve jobs to be fully vested, hence, it can be safely assumed he exercised his options at or close to the end of this vesting period....this explains why there was news about the event in the first place. But, let's be rational.......no one here, recovering 'cpa' or not, can make the definitive or credible claim that gore's reason for continuing to hold the shares has anything to do at all with the impending earnings report and therefore gives us 'longs' an advantage or 'peek' (wink-wink) into the details of the report as the poster, 'sqeezetracker' here claims.........IN OTHER WORDS, THERE IS NO IMPLICATION THAT EARNINGS WILL BLOW US ALL AWAY YET AGAIN JUST BECAUSE AL GORE EXERCISED A STOCK OPTION GRANT AND (OMG) KEPT THE IN HIS PORTFOLIO.
As to the so-called 'tax implications'......having exercised his options, gore will not pay taxes until he actually sells the part or all his shares....and keep in mind, we don't know what he plans to do with these shares....maybe he will gift them to family members....just one possibility......but say he sells,.....for the best tax treatment, he must also satisfy the conditions of a 'qualified disposition,' which means he may have up to a two year 'holding' period AFTER he exercises, this could explain why he hasn't actually sold the shares.....he will then get the a favorable tax treatment, which would be anyone's aim........in this case, the 20% cap gains tax rate on proceeds........BIG DEAL. again, no one here can claim they know anything more about aapl earnings on tuesdy because of this event.
"aving exercised his options, gore will not pay taxes until he actually sells the part or all his shares"
You actually do have to pay taxes on shares you exercise and hold. You pay AMT on the spread between the grant price and strike price ($403/share in this case)
You are wrong again. Company stock options are usually vested in stages over 1 to 5 years schedule. For example, a three year vesting schedule maybe 20% in the first year, 30% in the second year, and 50% in the third year. So after 3 years, the options are considered fully vested. Any amount of the vested portion of the options can be exercised anytime up to the expiration date.
Do you know for a fact his vesting schedule was ten years? That is unusual. A 4 year vesting schedule is the norm. As is a 10 year expiration date. My guess is these have been vested for almost 6 years and he exercised now because they were set to expired worthless in a few months.
As an Apple Director, Al Gore has confidential information about the "closed quarter" and upcoming guidance. Unless his option shares just became able to be exercised, he would have sold the 59000 shares back when the stock bounced back up to $580, thus receiving an additional $4.7 million($80 per share times 59000 shares). He didn't sell before due to a specific reason. He either couldn't, due to the exercise date of the option, or "chose not to sell" because he knows how good the quarterly results and guidance will be, and what the positive effect on the stock will be (say $50 to $100 up) on Wednesday, after hours. If we see that he has sold his shares on Tuesday or Wednesday, you can be assured that the quarter was disappointing. I believe he has several days after he sells to report it, which could be after the earnings information is public. Best guess here is that the quarter is very good and significant upside is expected after hours on Wednesday and Mr. Gore is ready to take advantage of what he knows is about to happen.
Please don't read too much into this. His options are expiring in March so he exercised them. He holds on to them because he can't sell so close to earning. Public companies have block out period which limits when insiders and employees can sell stocks. Please do some researches before putting your wishful imagination to work.