Will Nancy Pelosi call this “crumbs”?
(Bloomberg) Apple Inc. told employees Wednesday that it’s issuing a bonus of $2,500 worth of restricted stock units, following the introduction of the new U.S. tax law, according to people familiar with the matter.
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 move comes on the same day Apple said it would bring back most of its cash from overseas and spend $30 billion in the U.S. over the next five years, funding an additional technical support campus, data centers and 20,000 new employees.
Apple confirmed the bonuses in response to a Bloomberg inquiry Wednesday. The Cupertino, California-based company joins a growing list of American businesses that have celebrated the introduction of corporate-friendly tax law with one-time bonuses for staff. AT&T Inc., Comcast Corp., JetBlue Airways Corp. and Wal-Mart Stores Inc. also said they were giving bonuses.
In an email to employees reviewed by Bloomberg, Apple Chief Executive Officer Tim Cook said the move demonstrated his “confidence in Apple’s future†and that both full-time and part-time employees across all departments are elgible. Cook also said Apple would contribute twice the amount of each employee’s charitable donations, up to $10,000, through the end of the year.
$2500 may be crumbs to Pelosi, but it means something real to middle class folks, especially when that stock can grow in value.
Furthermore, everyone was initially reporting that Apple could be bringing back $38 billion. That’s actually just their tax payment
(CNBC) Apple just announced on Wednesday it will bring back hundreds of billions of dollars from overseas to fund investment in the U.S. and likely increase its capital returns.
“Apple, already the largest US taxpayer, anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law. A payment of that size would likely be the largest of its kind ever made,” the company said in the release.
Using the new 15.5 percent repatriation tax rate, the $38 billion tax payment disclosed by Apple means they are planning a $245 billion repatriation.
Crumbs? It’s funny how so many companies that are very much Democratic Party voting blocks really love this new tax law, eh?
IF Apple pays bonuses to all 84,000 employees, this amounts to less than 0.5% of the total they saved from the new tax policy.