Apple stock jumped to end Wednesday's session near the highs of the day after Bloomberg reported that the company has told employees it will issue individual bonuses worth $2,500 because of the Trump tax cuts.
Interestingly there was a notable absence of this move in any press release, and even more notable was the absence of any mention of the Trump tax cuts that implicitly prompted this generous move.
Additionally, Bloomberg notes that the iPhone maker will begin issuing stock grants to most employees worldwide in the coming months, said the people, who asked not to be identified because they weren’t authorized to speak publicly.
The report followed an earlier company press release where Apple disclosed how much it expects to pay in repatriation taxes as it transfers its massive offshore cash pile back to the US.
Citing anonymous sources inside the company, Bloomberg reported that the iPhone maker will begin issuing stock grants to most of its employees worldwide in the coming months. Earlier, the company said that it intends to use some of its repatriated cash to build an additional tech support campus, while also financing the construction of new data centers and the hiring of 20,000 employees.
Apple didn’t immediately respond to a request for comment. The Cupertino, Calif. company joins a growing list of American businesses that have celebrated the introduction of corporate-friendly tax law with one-time bonuses for staff. The other firms include AT&T Inc., Comcast Corp., JetBlue Airways Corp. and Wal-Mart Stores Inc.
Employees who rank below the director level (a rank that denotes senior employees) will be eligible to receive the bonus payment in stock. Apple - the world's most valuable company - has more than 120,000 US employees, including those who work at its retail stores.
* * *
Apple shares were notably volatile today as they bounced from headline to headline, ending with a vertical rip that saw shares close around the highs of the session...
In its Wednesday press release, Apple calculated that in combination with new investments and the company's current pace of spending with domestic suppliers and manufacturers - an estimated $55 billion for 2018 - Apple’s direct contribution to the US economy will be more than $350 billion over the next five years, not including Apple’s ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products.