Apple offers option holders opportunity to raise exercise price, get cash payment

“Apple Inc. Friday said it offered to amend certain options granted under its employee plan, giving participants the choice to raise the exercise price and get a cash payment,” Dow Jones reports.

“The offer relates to options that had an original exercise price per share less than the fair market value per share of the common stock underlying the option on the grant finalization date, the company said in a Securities and Exchange Commission filing,” Dow Jones reports.

Dow Jones reports, “Participants in the Cupertino, Calif., computer and digital music company’s program may elect to increase the exercise price per share to the fair market value, the filing said.”

“For each amended option, participants will receive a cash payment equal to the difference between the new exercise price and the original exercise price per share, the filing said. ‘Cash payments will be paid on or promptly following Jan. 25, 2008, and all such payments will be subject to applicable tax withholdings,’ the filing said,” Dow Jones reports.

Full article here.

Apple’s SEC filing in full here.

22 Comments

  1. trever – if you have to ask “what does that mean”, or you are first hearing about this on MDN, it means that you don’t have any of these options so you don’t need to worry about it! ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  2. Not yellow cake? It’s chocolate cake you don’t want to eat. Yellow cake with cream cheese frosting or yellow cake with jell-o mixed in would be great. But chocolate? Don’t make me regurgitate.

    MDN Magic Word: talk as in “Let’s talk about iPhone and see if Steve will let us (and by us I mean me) be a beta tester beginning tomorrow.”

  3. I don’t think “me” was being unkind to “trever”, however it is correct that if you don’t have an option to buy Apple stock (employee, ect). It will mean very little to you.

    Still… trever don’t be left out completely, go buy some AAPL today ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  4. Hey Trever, I’m with you – can someone please explain what all that jargon means in plain English? I’m not a stockbroker, and I don’t pretend to know anything about options, exercise prices, and the like.

    (And for you smart alecs who say “you don’t have any stock options, so why should you care?” I know I don’t have any, but still I’d like to know a little more about this.)

    MDN “love” (how ironic)

  5. What does this mean…..

    Apple is giving their employees the option to cash in the earned part of their vested option grants.
    I guess if I worked at Apple, and thought that their stock was going to double again
    (pushing me into a much higher tax bracket when I cash in options), I would jump at this.

  6. TowerTone,

    Have you been able to get Quicken working yet since the new OS update. Mine doesn’t work either. I’ve thought about reinstalling, but I don’t have a disk image because Quicken came preloaded.

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