Summary
This 8-K filing from Apple Computer, Inc. (AAPL) on April 21, 2006, reports on a material definitive agreement entered into on April 17, 2006. The agreement is a consulting arrangement with Jonathan Rubinstein, the former Senior Vice President of the iPod Division, through his company J.R. Ruby Consulting Corp. Mr. Rubinstein's consulting services will be available for up to one business day per week for a term of one year, ending on April 16, 2007. In exchange for these services, Apple will provide a non-material flat fee. This arrangement indicates a continued reliance on Mr. Rubinstein's expertise, particularly concerning the highly successful iPod division, even after his formal resignation.
Key Highlights
- 1Apple Computer, Inc. entered into a consulting agreement with Jonathan Rubinstein, former SVP of the iPod Division.
- 2The agreement is effective from April 17, 2006, and extends for one year, concluding on April 16, 2007.
- 3Mr. Rubinstein will provide consulting services for up to 20% of general weekly business hours (average of one day per week).
- 4The compensation for Mr. Rubinstein's services is a non-material flat fee.
- 5This agreement follows Mr. Rubinstein's resignation from his executive role on April 14, 2006.
- 6The filing is made under Item 1.01 (Entry into a Material Definitive Agreement) of Form 8-K.
Frequently Asked Questions
Apple is entering this agreement to retain the expertise and knowledge of Jonathan Rubinstein, who was instrumental in the success of the iPod division. This consulting arrangement allows Apple to continue benefiting from his insights for a defined period without him holding an executive position.
The consulting agreement is for a term of one year, from April 17, 2006, to April 16, 2007. Mr. Rubinstein will be available to provide consulting services for up to 20% of general weekly business hours, which averages to one business day per week.
The filing states that the compensation to Mr. Rubinstein is a 'non-material flat fee.' This suggests that the financial cost of this agreement is not significant to Apple's overall financial performance.
The agreement follows Mr. Rubinstein's resignation as Senior Vice President, iPod Division. While his direct leadership role has ended, the consulting agreement suggests a continued advisory capacity, potentially ensuring a smooth transition or ongoing strategic input for the division.