AAPL: Kevan Parekh Receives Time-Based and Performance RSUs Totaling 97,864
Rhea-AI Filing Summary
Apple Inc. (AAPL) reporting person Kevan Parekh, Senior Vice President and CFO, is reported as acquiring two awards on 09/28/2025 totaling 97,864 restricted stock units (48,932 RSUs in each award). One award is time-based and scheduled to settle in three equal tranches on April 1, 2028, April 1, 2029, and April 1, 2030. The second award is performance-based with a target of 48,932 RSUs that vests on October 1, 2028 subject to performance measuring Apple’s relative total shareholder return over fiscal years 2026–2028; actual payout may range from 0% to 200% of the target. Each RSU represents the right to one share of common stock. The reported awards are recorded as direct beneficial ownership and were reported via counsel on 09/30/2025.
Positive
- Clear alignment with shareholders via performance-based RSUs tied to relative total shareholder return
- Retention focus through time-based RSUs vesting in equal tranches through 2030
- Transparency in vesting schedules and payout range (0%–200%) disclosed
Negative
- Potential dilution from issuance of up to 97,864 shares depending on settlement and performance payouts
- Uncertain payout for performance RSUs (could be 0%), creating variability in realized compensation
Insights
TL;DR: Executive compensation awards totaling 97,864 RSUs align management incentives with shareholder returns but introduce potential dilution depending on performance payout.
These grants combine standard time-based retention RSUs and performance-based RSUs tied to relative total shareholder return, a metric intended to align executive pay with shareholder outcomes. The time-based portion vests in three equal tranches beginning April 1, 2028, which supports retention over multiple years. The performance RSUs have a payout range of 0%–200% at final determination, creating upside for strong relative performance and downside if targets are missed. From an investor perspective, the awards are routine compensation disclosure; materiality depends on company dilution and whether similar awards are consistent with prior practice.
TL;DR: Grants reflect common governance practice of mixing time- and performance-based equity to balance retention and pay-for-performance, with clear vesting schedules.
The filing discloses vesting schedules and performance metrics clearly, which is good governance transparency. Time-based settlement across 2028–2030 mitigates short-term turnover risk. The performance award’s 0%–200% payout range indicates symmetric upside/downside tied to relative TSR, a widely used benchmark. No departures, sales, or option exercises are disclosed, and ownership is reported as direct. The disclosure appears routine and compliant with Section 16 reporting requirements.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Restricted Stock Unit | 48,932 | $0.00 | -- |
| Grant/Award | Restricted Stock Unit | 48,932 | $0.00 | -- |
Footnotes (1)
- Each restricted stock unit represents the right to receive, at settlement, one share of common stock. These restricted stock units are scheduled to settle as to one-third of the units on each of April 1, 2028, April 1, 2029, and April 1, 2030, subject to the terms and conditions of the underlying award agreement. These performance-based restricted stock units are scheduled to vest on October 1, 2028, subject to the terms and conditions of the underlying award agreement. The "target" number of restricted stock units is reported. Between 0% and 200% of the target number of units may vest based on Apple's relative total shareholder return from the first day of Apple's fiscal year 2026 and ending with the last day of Apple's fiscal year 2028.
