Summary
This Form 8-K filing by Apple Computer, Inc. (AAPL) on August 15, 2005, details a new policy approved by the Compensation Committee of the Board of Directors allowing executive officers to satisfy tax withholding obligations arising from the vesting of restricted stock and restricted stock units (RSUs) by electing to have Apple withhold a portion of the vested shares. This election is permissible under the company's 2003 Employee Stock Plan and would cover the minimum amount required by tax laws. The first opportunity for this election to be utilized is expected during the second quarter of fiscal year 2006. This policy aims to provide executives with a convenient method for managing their tax liabilities associated with equity compensation, while the withheld shares will be canceled and not reissued. Investors should note that this primarily impacts executive compensation and tax management rather than a significant change in the company's overall financial strategy or share structure.
Key Highlights
- 1Apple's Compensation Committee approved a policy allowing executives to use vested shares to cover tax withholding obligations.
- 2This policy applies to restricted stock and restricted stock units (RSUs).
- 3Executives can elect to have Apple withhold shares equivalent to the minimum tax amount due.
- 4The election is permitted under the 2003 Employee Stock Plan.
- 5The earliest potential use of this policy is in Q2 fiscal year 2006.
- 6Shares withheld under this election will be canceled and not reissued.
- 7The filing was signed by CFO Peter Oppenheimer.