Apple SVP Bob Mansfield Just Sold 99% of His Apple Shares for $13.7 Million

Bob mansfield

Bob Mansfield is Apple’s Senior Vice President of hardware engineering, who earlier this week sold 99% of his shares in the company for $13.7 million, according to an SEC filing. Mansfield frequently trades his Apple stock; selling shares while they’re at their peak, then buying more as they fall with a 15% employee discount. His latest sale is his largest so far.

On Monday, Mansfield reportedly sold 38,863 of his Apple shares – leaving him with just 501 – each worth $351.89. Over the last three years, Mansfield has sold almost $58.5 million worth of investments, taking home $37.9 million after taxes.

Mansfield joined Apple from Raycer Graphics in 1999, and has been its SVP of hardware engineering since 2008 – reporting directly to Chief Operating Officer Tim Cook. Mansfield’s role was expanded to include the iPod and iPhone divisions back in August of 2010 after executive Mark Papermaster left the company following a rumored fall-out with CEO Steve Jobs.

Having now sold most of his liquid stake in Apple, Mansfield has fully-vested options to buy another 30,000 shares in 2014, at a rate of £36.54; in addition to 100,000 restricted stock units with a strike price of zero.

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  • Tom

    Surely this is ‘insider trading’ and illegal. He knows exactly whats happening in Apple. He knows what products are coming out and when the prices will rise. He knows when Steve is about to take sick leave etc.

  • Aputsiaq Christensen

    This doesn’t look promising in relation with the whole location tracking ‘mishap’.

  • TinusH

    So he is publicly trying to push the price down so he can buy back at a lower price and also get an employee discount?
    And he has done that before (how often?).

    I would fire such an employee!

  • AppBuster

    Mansfield should invest in better quality of the hardware products. I read too many stories about bad display quality of iPad 2, iMac, dead TimeCapsules ;-)

  • nolavabo

    Actually the easiest way to display that it is NOT insider trading is to sell when the stock is considered to be cheap, as it is right now. AAPL shares are *historically* cheap right now, cheaper in PEG terms even than at the height of the Credit Crunch when it dipped back to $78. If you sell, and it then goes up, claims of insider trading look ridiculous.

    Saying that he sells at the peak is incorrect. He last sold at $270ish, and the stock price is now $80 higher in less than a year.

    Most insiders automatically sell all shares on a regular basis, e.g. 12 months after they vest, regardless of the movements of the stock price. In the long run, the price averages out, and claims of insider trading are avoided. That Mansfield doesn’t do this is why you describe it as “trading” I assume.

  • ABM

    Ton, you obviously don’t know anything about business or stocks.

  • TinusH

    @ABM:

    I know more than enough about business and stocks and I would not allow my employees to act in the manner as described. Whether this is legal in the US I do not know but I do know it is far from ethical!

  • tiresius

    While Mansfield may not have one iota of charitable intent, a good tax reduction (or avoidance) strategy would have been to “gift” SOME of his shares to a qualified non-profit by transferring ownership of those shares to the charity instead of selling those shares.

    By doing this, not only would he have made a sizable contribution AND he would have qualified for a tax deduction for the full market value of those gifted shares as valued at the time of sale.

    By gifting a portion of his shares, he could have helped a charity while also reducing his tax burden, which otherwise would have eaten into his “profit” from the sale of his shares.

    Any decent tax advisor could have walked him through this strategy. It would have been a win:win and available for anyone with highly appreciated securities. Like Silicon Valley folks!

    [And while some are decrying this sale as "insider trading," I doubt that the SEC would be concerned. The total number of shares involved are a minor portion of the available AAPL shares. And while Mansfield may well be privy to information not yet public, he has already established a prior pattern of selling and re-purchase. Odds are he also had a pre-established Sell target that was triggered when the shares reached a particular price.]

  • Theapplemobileblog

    Expect some new from Apple here. Someone retiring?

  • tiresius

    @ton

    If Mansfield sold his shares @ $350 for the reported $13.7 million, that would mean that he unloaded about 40,000 shares of a company that is currently valued at $323 BILLION.

    Don’t think the market will take much notice, except for all those who sell on the rumor.

  • TinusH

    @tiresius:

    You are one of those bankers for which the word “ethical” has no meaning?

  • Coldbluesteel

    “I can get a good idea where steak comes from by sticking my head up a cows ass but I think I’ll just take the butcher’s word for it.”
    It was either Mansfield or Farley that said that.

  • ABM

    You said you know enough about business and stocks and then say you don’t know if it’s legal. How do you rationalize the disconnect? Selling stock is neither unethical nor illegal. There is not, nor has there ever been, an ethical requirement to only sell stock after you cease working for a company. Legality and ethics only enter into it if he acted on information kept from the public that he has access to. This is done every day in businesses around the world, often at preset sale prices. Execs regularly sell off large amounts of stock for companies they work for, then they option more stock. Nothing illegal, unethical, or nefarious about this.

  • ABM

    Also, you can’t forbid them from selling stock.

  • TinusH

    Fromt the words “Whether this is legal in the US I do not know” you could easily conclude that I do not live in the US!

    Besides that it is the ethical point as I wrote “but I do know it is far from ethical!”.

    But apparently ethics are something you do not care about. I wish you good luck with these kind of practices from employees.

    “Also, you can’t forbid them from selling stock.”
    Company can regulate the way their employes (and family) the way they act with their stock.

About the author

Killian BellKillian Bell is a freelance writer based in the UK. He has an interest in all things tech, but most enjoys covering Apple, anything mobile, and gaming. You can follow him on Twitter via @killianbell, or through his website.

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