Under a new stock incentive program, Apple Inc. will allow all employees to be eligible for restricted stock units, including those at the store level.
The stock vests over time and is designed to retain employees for a longer period of time.
In a memo last week to employees uncovered by several tech websites, Tim Cook, Apple's CEO, noted that all employees — including retail associates — have been able to acquire stock at a discount as part of its Employee Stock Purchase Plan (ESPP).
In addition, some employees — "typically from our product areas" — as well as upper management have received restricted stock units "as an incentive to continue their important contributions to Apple." The new program makes everyone eligible for restricted stock grants and was particularly "designed to reach employees who were not previously eligible, including many in our amazing retail and AppleCare teams," referring to the company's customer-service workers.
Photo: RetailWire
"This is an unusual step, and very special — just like our team," wrote Mr. Cook. "At Apple, our most important resource — our soul — is our people. Along with our many progressive benefit plans, this is another way for us to say thanks."
Sources at Apple Retail told 9to5Mac that restricted stock awards began being distributed to employees last week, with initial grants ranging from $1000 to $2000 worth of shares.
While many tech companies provide such stock grants to employees, it is rare for hourly employees. Starbucks offers restricted stock grants, called Bean Stock, to employees, including part-time baristas and other store workers, after they've worked a certain number of hours.
Ken Abosch, who leads Aon Hewitt's broad-based compensation practice for North America, said some retailers provide shares to a select number of lower-wage workers, but few large companies provide that benefit to the majority of their front-line employees.
The move is expected to help Apple compete for employees as the labor market improves and other major retailers raise wages. Pay for retail workers is also expected to come under more scrutiny with income disparity becoming a hot-button issue this election season.
- Tim Cook Memo: Apple launches RSU shares program for all employees to retain talent - 9to5mac.com
- Apple opens up stock awards to all employees—even hourly retail workers - The Washington Post (tiered sub.)
- Apple Opens Stock Grants to All Employees, Including Retail - Wired
- Tim Cook Announces New Restricted Stock Unit Program for All Apple Employees - MacRumors
- Apple extends restricted stock grant program to all employees - Appleinsider