The NASPP Blog

Last month, in a blog titled “Unicorns and RSUs“, I talked about a new recruiting phenomenon in Silicon Valley – where so-called “unicorns” (a fancy word for tech start ups that are valued at more than $1 billion) are luring talent from long-standing tech giants like Google and Amazon. So, yesterday when the news broke that Apple is now offering RSUs to all employees, I wondered if this could be an attempt to retain talent across the organization and stave off the unicorns.

A Slice of Apple for All

Apple has long had an ESPP plan, and now they are expanding their broad based stock plan offering to include RSUs. In a memo to employees, CEO Tim Cook said “This new program extends eligibility to everyone not covered by other RSU programs, effectively making everyone who works at Apple eligible for an RSU grant. This is an unusual step, and very special — just like our team.” CEO Cook is right, this is special. Broad based RSU programs are hard to come by – certainly one that makes all employees eligible to receive stock grants. In the most recent NASPP Domestic Stock Plan Design Survey (2013, co-sponsored by Deloitte), 15% of overall respondents said that non-exempt employees are eligible for stock awards. The high-tech industry as a subset of overall respondents fared a bit higher, with 24% of those respondents saying that non-exempt employees are eligible for stock awards (note: “stock awards covers both RSAs and RSUs). So, yes, Apple’s move to broad based RSUs is indeed unique.

Unicorns Be Gone

Only Apple insiders know the goals of this new expanded awards program. Outsiders speculate that it’s a big move to retain talent. Only Apple knows if this is a direct counter-effort to unicorn recruiting enticements. Whatever it is, it’s likely to make waves among tech companies who now will (undoubtedly) have conversations of their own about stock compensation. Is this a unique instance, or will this be the start of a new era of broad based stock awards? One thing seems certain – the stock plan folks at Apple are probably very busy right now. The word on the street is that the new RSUs are being handed out immediately.

The Biggest Water Cooler

When something big happens that sends waves of chatter through the stock plan community, it’s great to have a network of people to swap and share ideas. Isn’t that one of the primary purposes of the proverbial “water cooler”? The great news is that the biggest water cooler opportunity of the year is right around the corner – the NASPP’s 23rd Annual Conference kicks off in San Diego in less than two weeks! It’s not too late to register, and this is where you’ll get caught up on the latest and greatest water cooler (among other) topics.

-Jenn