Under your suggestion/demand, Cook gets to keep his 1 million restricted shares.
The idea that the buybacks were solely to offset stock options dilution was a financial mistake. They should buy back a lot more shares if the price is right. Now, they're on a path to buy back $10 billion of shares over 3 years ($8 billion to go) , so what they bought last Q is on that path. They should have described the plan in shares, not in dollars. Dilution has to do with shares, not the value of the shares.
They could implement an "accelerated" plan using puts, etc. through a major investment banking firm, and buy back almost 20 million shares.
If they do that and the stock is even $75 higher after a few quarters, he will have earned his restricted shares, in one shot.
Then they should still offset future dilution. That's what Amazon seems intent to do.
The 5 million shares Amazon bought back last winter for 181 are worth $500 million more, and I consider that a hidden $500 million after-tax gain which those who are perplexed at a >3,000 PE don't count. |
