Apple employees will receive $2,500 bonuses soon, to be handed down in the form of stock grants. Earlier, the company revealed plans to boost the U.S. economy.
It is estimated that majority of the 120,000-strong Apple employees worldwide, comprising of campus and retail personnel, will get access to the stock awards. Apple said the gifts will be made available to "to all individual contributors," and will include full-time and part-time members of the organization.
"To show our support for our team and our confidence in Apple's future, we'll be issuing a grant of $2,500 in restricted stock units to all individual contributors and management up to and including Senior Managers worldwide. Both full-time and part-time employees across all aspects of Apple's business are eligible," Apple CEO Tim Cook said in an email sent out to company employees.
In addition, Cook revealed that Apple intends to "match all employee charitable donations," indicating that the iPhone maker is ready to contribute up to $10,000 through the end of the year for every donation made by an Apple employee.
"Your generosity helped people around the world through causes that are important to you. I'm proud that this year we'll be able to build on that tradition of giving," the Apple chief said.
How The Stock Award Will Play Out
The bonus distribution will commence in the coming months, Bloomberg reported, adding that Apple has issued confirmation on the matter. The publication likewise noted that Apple's move of giving out bonuses appears in celebration of the U.S. government's recent introduction of corporate-friendly tax law.
It is worth noting that the bonus payouts are in restricted stock units (RSU), the value of which are equivalent in company shares. The RSUs will vest over time but in the case of Apple's awarded stocks, the timing of vesting remains unknown.
Apple's decision to issue stock grants was made following an earlier commitment to further bolster the local economy, initially by bringing back its overseas cash reserves, estimated to be at $250 billion as of the second quarter of 2017.
Along with the plan to spur economic activities — construction of new company campus, making payments to suppliers, job creation, and capital expenditures — Apple said bringing home its overseas cash will amount to tax payment of around $38 billion to the U.S. treasury.
Apple playing generous following the tax cuts provided by the Trump Administration is not the first. Prior to the bonus announcement, corporate companies such as AT&T, Comcast, JetBlue Airways, and Walmart have all revealed plans to grant one-time bonuses, also in response to the new tax law.