Apple Equity FAQ

Apple RSUs vest semi-annually over 4 years, with 12.5% vesting every six months. Vesting occurs on the 15th day of April and October, meaning you'll receive eight equal installments starting six months after your grant date. You'll also receive Dividend Equivalent Rights (DERs) paid in cash during the vesting period.

Apple's ESPP allows you to contribute up to 10% of your salary to purchase Apple stock at a 15% discount. The plan has 6-month offering periods starting February 1 and August 1, and includes a lookback provision that applies the discount to whichever price is lower—the offering date or purchase date. This can result in significant savings if the stock price increases during the period.

You can enroll in Apple's ESPP twice per year during enrollment windows that begin in February and August. Each offering period lasts 6 months, with purchases occurring semi-annually. Plan ahead to ensure you don't miss the enrollment window for the period you want to participate in.

Yes, Apple issues both on-hire stock awards and stock refresher grants to employees. While the specific frequency and amounts vary, refresher grants help ensure ongoing equity compensation beyond your initial grant. These refreshers follow the same semi-annual vesting schedule as your original RSU grants.

Apple defaults to withholding 22% for federal taxes (plus 10.23% for California state taxes if applicable) when your RSUs vest. However, if your actual marginal tax rate is higher than 22%, you may owe additional taxes at year-end. You can adjust your withholding rate to better match your tax situation.

To qualify for long-term capital gains treatment on your ESPP shares, you must hold them for at least 1 year after the purchase date AND 2 years after the start of the offering period. Meeting both requirements allows you to pay lower long-term capital gains rates on a portion of your profit instead of ordinary income tax rates.

If you voluntarily leave Apple, you will forfeit any unvested RSUs. Only the RSUs that have already vested by your departure date will remain yours to keep. This is a common concern for employees considering leaving before their full 4-year vesting schedule is complete.

Yes, Apple employees are subject to blackout periods during which you cannot trade Apple stock. These blackout periods may cause you to miss opportunities to sell shares when you'd prefer to. Apple does offer 10b5-1 trading plans, which allow you to set up pre-scheduled trades that can execute even during blackout periods.