CUPERTINO, CA – In a transition that was announced earlier, Apple Inc. (NASDAQ:AAPL), currently valued at $3.67 trillion, has officially appointed Kevan Parekh as its new Senior Vice President and Chief Financial Officer, effective January 1, 2025. The announcement was made in a filing with the Securities and Exchange Commission on Friday.
According to InvestingPro, Apple maintains a "GOOD" financial health score, reflecting its strong market position as a prominent player in the Technology Hardware industry.
Parekh, 53, takes over the CFO role from Luca Maestri, as part of a planned succession. Having been with the company since June 2013, Parekh's journey at Apple has seen him in roles such as Vice President, Financial Planning and Analysis, and Vice President, Finance for Sales, Marketing, and Retail. Before his tenure at Apple, Parekh held senior leadership positions at Thomson Reuters (NYSE:TRI) and General Motors (NYSE:GM).
With his new role, Parekh's annual salary has been increased to $1 million, and he is eligible for the Apple Inc. Executive Cash Incentive Plan for the fiscal year 2025. His target incentive is set at 175% of his base salary, proportionate to his time in his new role during the fiscal year. The company's strong financial position is evident in its impressive $391 billion in revenue and 46.2% gross profit margin over the last twelve months.
In addition to his salary, Parekh was awarded 36,767 performance-based restricted stock units (RSUs) and an equal number of time-based RSUs for fiscal year 2025 under the Apple Inc. 2022 Employee Stock Plan. The performance-based RSUs are subject to vesting on October 1, 2027, with the actual number of RSUs vesting to be determined by Apple's total shareholder return compared to the S&P 500 index over a three-year period. The time-based RSUs will vest in three equal installments across 2027 to 2029.
Apple has provided Mr. Parekh with the company's standard executive indemnification agreement. The company's filing also confirmed that there are no familial relationships between Parekh and any directors or executive officers of Apple, nor are there any transactions that would require disclosure under SEC regulations.
This executive move comes as the tech giant continues to navigate a complex global market, with a focus on maintaining its financial health and strategic growth. The stock currently trades near its 52-week high of $260.10, with a one-year total return of 33%.
For deeper insights into Apple's valuation and growth prospects, including 14 additional key ProTips, visit InvestingPro for comprehensive analysis and the exclusive Pro Research Report. The information in this article is based on a press release statement.
In other recent news, Apple Inc. has been the subject of several notable developments. The company recently settled a Siri privacy lawsuit for $95 million, a move that now awaits approval from U.S. District Judge Jeffrey White.
Analysts from Bernstein and Wedbush Securities have maintained an Outperform rating on Apple's stock, with the former adjusting the price target from $240 to $260 and the latter from $300 to $325. Both cite potential for growth, with Wedbush highlighting advancements in artificial intelligence (AI) as a major driver.
On the other hand, UBS has moderated its outlook on Apple due to weaker iPhone sales, prompting a downward revision of iPhone unit and revenue forecasts for the December quarter. Additionally, Apple's biggest smartphone rival in China, Huawei, reduced the prices of its high-end devices during a "Super Brand Day" promotion on JD (NASDAQ:JD).com.
These recent developments showcase the dynamic environment in which Apple operates, with both opportunities for growth and challenges to navigate. With an emphasis on earnings and revenue information, these updates provide valuable insights for investors.
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