Apple Benefits Handbook Brought to you by BakerAvenue - As of June 2024 | Page 4

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Optimize Your Apple Compensation Package | 10 Benefits to Take Advantage Of

Stock Compensation

Apple provides various forms of stock awards to its employees and executives as a vital component of their compensation package. These awards may include Restricted Stock Units (RSUs), stock grants, performance-based incentives, stock options, and stock appreciation rights. RSUs typically vest over a span of four years, contingent upon sustained employment, and are redeemed upon maturity in shares of the company's common stock at a one-to-one ratio. Such stock-based compensation is subject to taxation, with taxes generally deducted upon vesting. Employees have the option to retain the net shares for the long term or liquidate them for cash whenever desired. However, holding onto shares post-vesting does not yield immediate tax advantages.

Employee Stock Purchase Plan

Apple permits employees to contribute up to 10% of their base salary to the Employee Stock Purchase Plan. Using the withheld funds, employees are able to purchase Apple stock at a 15% discount on the current market price.

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After you reach 59½ years of age, you can withdraw the money and use it as you see fit. These

withdrawals are referred to as distributions. Early distributions—made before 59½—may incur penalties. Read more about eligible early withdrawals on the IRS website.

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LINKS TO APPLE'S FULL TRADING POLICY

Apple Insider Trading Policy | FAQs: 10B5-1 Trading Plans