Talent war: Apple gives out rare $180-K bonuses to ward off defections

Apple has issued unusual and significant stock bonuses to some engineers in an effort to retain talent, looking to stave off defections to tech rivals such as Facebook owner Meta Platforms.

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. The perk was presented by managers as a reward for high performers.

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. 

 

Talent War

• The bonuses have ranged from about $50,000 to as much as $180,000 
• The value of some of the bonuses equaled the annual stock grant given to some engineering managers
• Meta has stepped up efforts to poach talent from Apple’s augmented reality, artificial intelligence, software and hardware engineering divisions
• The Facebook-parent has hired about 100 engineers from Apple in the last few months