Apple Gives Employees $2,500 Bonuses Because Of Trump Tax Cuts

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.

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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...

Apple

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.

 

Comments

MoreFreedom Bes Wed, 01/17/2018 - 16:54 Permalink

When it comes to even smaller tax cuts, Democrats act like it's big money.  But these bonuses are crumbs. 

The funny thing about this, is that Apple is doing this, when it seems their leaders like Tim Cook are all against Trump.  Seems they preferred Hillary with no employee bonuses.

 

In reply to by Bes

LetThemEatRand MoreFreedom Wed, 01/17/2018 - 17:19 Permalink

There's some truth on both sides of this.  Apple is bringing back $252B thanks to the Trump tax cut that benefits large companies like Apple that have foreign cash sitting around.  If Apple gives each of its 120,000 employees $2500, that equates to around $31B, or a bit more than than 10% of the amount Apple gets to keep thanks to the tax giveaway.  Obviously the employees are happy to get their extra bonus, but it is also proof that the vast majority of the funds will end up elsewhere. 

Keep in mind that this is also a one time bonus, and I'll bet Apple gives it out in lieu of (or with reductions in) regular raises.  Great optics for management, but not a whole lot of there there when it comes right down to it.  I'll bet a lot of the more highly paid but still middle class employees would have done much better with a direct middle class tax cut.

In reply to by MoreFreedom

cheeseheader Bes Wed, 01/17/2018 - 19:51 Permalink

Bessie...you continue to astound me (and all the other logical/common-sensical posters here) with your lack of aforementioned.

Are you Nancy?, because she said the other day that any bonuses by a host of other companies were merely 'crumbs'.

But you are kinda cute in a six year old kinda way....

Don't worry, Vasser will still be there when you're ready.

In reply to by Bes

PrivetHedge Wed, 01/17/2018 - 16:39 Permalink

Great news.

I'm still waiting for a laptop with USB3 sockets, Magsafe and at least a 1080p screen with a decent backlight though.

Seriously - how hard can it be?

 

Blankfuck Wed, 01/17/2018 - 16:46 Permalink

Boners and bonuses for all!   with $$$ plenty of Viagra available in the "ponzimatics game" controlled by fed reserve-preserve  fuckers of Amerika. Bonerheads unite!

wmbz Wed, 01/17/2018 - 16:46 Permalink

Shouldn't this bonus be offensive to the Trump hating libtards at APPL?

I'm sure the ones that really hate Trump will not accept theirs, or donate to a worthy cause, like save the smelt .

gatorengineer skeelos Wed, 01/17/2018 - 16:55 Permalink

$2500 bonus in commiefornia gets you 7.75 percent to social security, lets call it 10% state and local, UEI SUI etc, and 28 percent marginal federal...  So after taxes you get 55% take home or about $1300 bucks, thats an APPLE X and a sushi dinner for you and the wife....

In reply to by skeelos

Ikiru Wed, 01/17/2018 - 16:56 Permalink

Anyone who thinks $2500 is crumbs is either a rich liberal douchebag or a poor liberal douchebag who can’t stand the thought that Trump tax cuts are helping.  I’m an independent contractor, so I won’t get a bonus, but I will see reduced taxes.  I can certainly understand people who don’t like Trump, but if you’re upset about tax cuts, you’re a brainwashed idiot.  If you want to give more money to the government, get out your checkbook and send it in—they certainly take donations.   

LetThemEatRand Garciathinksso Wed, 01/17/2018 - 17:30 Permalink

Trump's tax plan mostly helps the rich.  Of course "mostly" means not entirely, so there will be some benefit to the middle class.  It is not idiotic to call out Trump for not doing more for the middle class as he promised in his campaign.  What is idiotic is to reflexively thank your overlords for throwing you a bone after they finish off their juicy steak, when the deal was supposed to be that you get the steak.

In reply to by Garciathinksso