Wednesday, March 18, 2020

Apple

Part of the Trump tax cut allowed companies to bring home money from overseas on a one time deal at a lower rate. Some $700 billion dollars was repatriated. Much of this was used to buy back stock which is a way to distribute money to stockholders. Apple for example brought home $250 billion and used $150 billion to buy back stock and this increased the dividend 57%. Apple has 1.1 million shareholders. If they had given that $150 billion buy money to the employees each of their 137,000 employees would have received over one million dollars. Hard to say which of these options would have been the most controversial since the average Apple employee earns $125,000.

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