Threat from tech rivals Facebook-owned Meta Platforms for poaching employees, Apple Inc. has given stock bonuses to performing engineers to prevent attrition and retain talent.
As per Bloomberg News, Apple Inc. informed some of its employees last week that they were issued stock options with a vesting period of 4 years. The employees included engineers in hardware and some select software groups. The out-of-cycle bonus and a lock-in period were incentives for employees to stay with the iPhone maker.
The bonus, which ranged from $50,000 to $180,000, came as a surprise to the employees. Some engineers received $80,000, while others got $120,000 in shares. The perks were given as a reward for high performers.
A representative of the company declined to comment on this matter.
Apple has been waging a battle to retain its talent pool after threats from Silicon Valley companies, including Meta. Meta is the principal threat as they have hired over 100 Apple engineers in the past few months, though it has not been a one-way street as Apple also lured away some key employees from Meta.
Both apple and Meta are fierce rivals in VR and AR headsets and smartwatches and plan major hardware releases in the next two years.
This pay-out excludes Apple’s employees’ standard compensation package includes base salary, cash bonus, and stock units. Apple usually awards an additional cash bonus, but the size of the recent one was surprisingly timed and untypical. About 10% to 20% of the engineers in the applicable department were given this award.
Some engineers were irked when they did not receive the award and believed that the selection process was arbitrary. The value of the stock options stands to increase if the value of Apple’s share price rises. The share price has already risen 36% this year, and the present market capitalization is around $3 trillion.
Meta has, in the meantime, also stepped in its effort to lure away engineers in the AR, AI, hardware, and software engineering divisions. The social media company with Facebook, WhatsApp, and Instagram in its fold is also raising salary significantly as it focuses on its Metaverse and hardware business.
The talent has also affected Apple Inc.’s self-driving car business. The company requires engineers for its AR and VR headsets, Car, and future iPhone versions.
However, Apple’s new policy deadline for return to Office has not gone well with some employees, leading to defection to rivals. The company wants its corporate employees to work at least three days a week while engineers in the hardware division work for four days. Other companies, including Meta, are more relaxed with policies.
