Apple Reserves Shares for Top Executives

Apple Computer Inc. set aside 17 million shares, or 13% of its total shares outstanding, to be awarded to executives in an effort to prevent the loss of top talent. The shares will be given to senior executives, including the chairman, chief operating officer and other “key employees.” The new plan, outlined in Apple’s proxy filing with the Securities and Exchange Commission, expands the number of shares that may be awarded and the types of stock-based performance awards that may be granted, including options, stock appreciation rights and stock purchase rights. Apple has floundered as almost every top executive, with the exception of Interim Chief Executive Steve Jobs and Chief Financial Officer Fred Anderson, has left the company in the last two years. In that time, the Cupertino-based company reported losses of $1.86 billion as it has struggled to stem sliding market share and to compete with cheaper machines that use Intel Corp. chips and Microsoft Corp. software. Apple’s shares have risen more than 80% since late last year, and the company is on track to post a profit this year. Its stock fell 34 cents to close at $26.34 on Nasdaq.