Last week, the company informed some engineers in silicon
design, hardware, and select software and operations groups of the out-of-cycle
bonuses, which are being issued as restricted stock units, according to people
with knowledge of the matter. The shares vest over four years, providing an
incentive to stay at the iPhone maker.
The bonuses, which came as a surprise to those who received
them, have ranged from about $50,000 to as much as $180,000 in some cases. Many
of the engineers received amounts of roughly $80,000, $100,000, or $120,000 in
shares, said the people, who asked not to be identified because the program
isn't public. The perk was presented by managers as a reward for high
performers.
A representative for the Cupertino, California-based company
declined to comment.
Apple is waging a talent war with companies in Silicon
Valley and beyond, with Meta emerging as a particular threat. Meta has hired
about 100 engineers from Apple in the last few months, but it hasn't been a
one-way street: Apple also has lured away key Meta employees.
The two companies are likely to become fierce rivals in augmented-
and virtual-reality headsets and smartwatches, with both planning major
hardware releases over the next two years.
The payouts aren't part of normal Apple compensation packages,
which include a base salary, stock units and a cash bonus.
Apple sometimes awards additional cash bonuses to employees,
but the size of the latest stock grants were atypical and surprisingly timed,
the people said. They were given to about 10 percent to 20 percent of engineers
in applicable divisions.
The bonus program has irked some engineers who didn't
receive the shares and believe the selection process is arbitrary.
The value of some of the bonuses equaled the annual stock
grant given to some engineering managers. And their value stands to increase if
Apple's stock price continues to rise. The shares are up 36 percent this year,
putting the company's market capitalization at nearly $3 trillion.
Meta, meanwhile, has stepped up efforts to poach engineering
talent from Apple's augmented reality, artificial intelligence, software and
hardware engineering divisions. The social media giant, which operates
Facebook, Instagram, and WhatsApp, has dangled significant salary raises as it
looks to refocus around hardware and the so-called metaverse.
A talent drain also has hit other areas, including Apple's
self-driving car team. The company needs to maintain its engineering prowess as
it works on several next-generation devices, including the car, VR and AR
headsets, and future versions of the iPhone.
At the same time, Apple's drumbeat to return to the office
has jarred some employees, leading to engineering defections. Though the
company has delayed its deadline for staff to come back, it's taking a harder
line on in-person work than some of its technology peers.
Apple has said it expects corporate employees to work from
the office at least three days per week, while hardware engineers will be
required to log four or five days a week. Meta and other companies intend to be
more lax with their policies.
But Apple acknowledged this month that workers will likely
stay at home for the foreseeable future. After scrapping its office-return
deadline, Apple said it would issue $1,000 bonuses to all corporate, retail and
technical-support employees so they can purchase home equipment.