Kevan Parekh
AppleAbout Kevan Parekh
Kevan Parekh, 53, is Apple’s Senior Vice President and Chief Financial Officer, appointed effective January 1, 2025; he oversees accounting, FP&A, treasury, IR, internal audit, and tax, and joined Apple in 2013 after senior finance roles at Thomson Reuters and General Motors . He holds a B.S. in Electrical Engineering from the University of Michigan and an MBA from the University of Chicago . Under his finance leadership, Apple reported FY2025 revenue of $416B with double-digit EPS growth and record Services revenue and installed base, signaling execution strength as CFO .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Apple | VP, Financial Planning & Analysis | 2013–2024 | Led FP&A; broadened remit over G&A & Benefits Finance, Investor Relations, and Market Research; deep involvement in financial and product planning . |
| Apple | VP, Worldwide Finance (Sales, Marketing, Retail) | 2013–2024 | Drove global finance support for Sales, Retail, and Marketing, strengthening commercial discipline and go-to-market analytics . |
| Apple | Finance support for Product Marketing, Internet Sales & Services, Engineering | 2013–201x | Built financial support frameworks for product and services development, aligning investment priorities with growth . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Thomson Reuters | Senior finance leadership roles | Pre-2013 | Led global finance teams; broadened multi-region operating experience relevant to Apple’s scale . |
| General Motors | Senior finance leadership roles | Pre-2013 | Operated across Europe and Asia; developed global operational finance acumen . |
Fixed Compensation
| Component | Detail | Effective |
|---|---|---|
| Base Salary | $1,000,000 | Jan 1, 2025 . |
| Target Bonus (Executive Cash Incentive Plan) | 175% of base salary (pro-rated for FY2025 based on time in roles) | FY2025 . |
Performance Compensation
Cash Incentive Structure (Executive Cash Incentive Plan)
| Metric | Weighting | Target Payout Basis | Payout Range | Modifier | Notes |
|---|---|---|---|---|---|
| Net Sales | 50% | Targets set annually; target equals 100% of base salary per metric for NEO program design | 50%–200% of target per metric | ±10% values-based modifier; overall cap 200% | Apple’s program uses equal weighting of Net Sales and Operating Income with capped payouts; Parekh’s FY2025 total target opportunity is 175% of base, pro-rated . |
| Operating Income | 50% | Targets set annually; target equals 100% of base salary per metric for NEO program design | 50%–200% of target per metric | ±10% values-based modifier; overall cap 200% | Structure as above; actual FY2025 payouts not yet disclosed . |
Equity Awards (FY2025 grant terms disclosed at appointment)
| Award Type | Target Shares | Performance Metric | Measurement Window | Vesting | Payout Range |
|---|---|---|---|---|---|
| Performance RSUs (PSUs) | 36,767 | TSR vs S&P 500 | Sep 29, 2024–Sep 25, 2027 | Oct 1, 2027 | 0%–200% of target based on percentile . |
| Time-based RSUs | 36,767 | N/A | N/A | In three equal installments on Apr 1, 2027, Apr 1, 2028, Apr 1, 2029 | N/A . |
PSU Metric Design (for context)
- Apple’s PSUs use Relative TSR with linear interpolation and 200% cap at ≥85th percentile; negative absolute TSR caps vesting at 100% for PSU cycles, per program design .
Equity Ownership & Alignment
| Policy/Guideline | Apple Policy | Kevan Parekh Status/Notes |
|---|---|---|
| Stock Ownership Guidelines | Executive officers must hold stock equal to 3x annual base salary within 5 years; CEO 10x . | Parekh, as CFO, is subject to 3x guideline; individual compliance status not disclosed . |
| Hedging/Pledging | Hedging, short sales, and pledging prohibited for directors and executive officers . | No pledging permitted; aligns with shareholder interests . |
| Insider Trading Policy | Comprehensive insider trading policy on file; repurchase procedures in place . | Company-wide policy applies; 10-K Item 9B reported no insider trading arrangements adopted/terminated in the period (“None”) . |
| Clawback | Mandatory SEC/Nasdaq clawback for erroneously paid performance-based comp; discretionary recoupment for misconduct, confidentiality breaches, fraud, etc. . | Applies to cash and equity awards, including PSUs and RSUs . |
Employment Terms
| Term | Detail |
|---|---|
| Appointment & Indemnification | Appointed CFO effective Jan 1, 2025; entered Apple’s standard indemnification agreement . |
| Employment | At-will; no employment contracts for named executive officers . |
| Severance | No guaranteed cash severance; no change-of-control payments or excise tax gross-ups . |
| Equity on Termination | Death: full accelerated vesting for time-based RSUs; PSUs pro-rated at cycle end; Disability: pro-rata vesting for time-based RSUs; PSUs pro-rated at cycle end (general NEO terms) . |
| Change-of-Control | No automatic acceleration of equity awards on change-of-control for NEOs . |
Performance & Track Record
- FY2025 results: Apple posted Q4 revenue of $102.5B (+8% y/y) and non-GAAP EPS of $1.85, with FY revenue reaching $416B and record Services revenue and installed base, underpinning CFO execution and capital discipline .
- Disclosure controls: Company’s principal executive and financial officers concluded disclosure controls were effective as of Sep 27, 2025; internal control commentary emphasizes reasonable assurance and inherent limitations, reinforcing CFO’s governance focus .
- Leadership signatures: Parekh signed Apple’s FY2025 10-K and Section 906 certifications, evidencing principal financial officer responsibilities and accountability .
Performance Compensation — Detailed Table
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Net Sales (Cash Incentive) | 50% | Target equals 100% of base salary per metric; Parekh overall FY2025 target opportunity: 175% of base (pro-rated) . | Not disclosed | Up to 200% per metric; overall cap 200%; ±10% values modifier . | Cash paid after FY performance; subject to modifier and cap . |
| Operating Income (Cash Incentive) | 50% | Same as above . | Not disclosed | Same as above . | Same as above . |
| PSU (Relative TSR vs S&P 500) | 100% of PSU grant | 36,767 target shares . | Vests based on percentile; 0–200% scaling; negative absolute TSR cap at 100% per program . | 0%–200% of target shares . | Vests Oct 1, 2027; measurement Sep 29, 2024–Sep 25, 2027 . |
| RSU (Time-based) | N/A | 36,767 shares . | N/A | N/A | Equal tranches Apr 1, 2027/2028/2029 . |
Vesting Schedules and Potential Insider Selling Pressure
| Award | Vest Dates | Shares | Notes |
|---|---|---|---|
| PSU (FY2025 grant) | Oct 1, 2027 | 0–73,534 potential (0–200% of 36,767) based on Relative TSR | Large single vest could create liquidity events; subject to blackout and insider policy . |
| RSU (FY2025 grant) | Apr 1, 2027; Apr 1, 2028; Apr 1, 2029 | 12,255 per installment (36,767 / 3) | Staggered tranches mitigate single-date pressure; still notable around April windows . |
Compensation Structure Analysis
- Shift and mix: Parekh’s compensation follows Apple’s NEO model emphasizing long-term equity with PSUs based on Relative TSR and longer RSU vesting, reinforcing pay-for-performance and retention; his FY2025 cash target (175% of base pro-rated) sits modestly below the standard 200% NEO target, indicating higher emphasis on equity-driven alignment during transition year .
- Governance safeguards: Robust clawbacks, prohibition on hedging/pledging, and ownership guidelines support shareholder-friendly design; no CoC payments reduce pay inflation and misalignment risk .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited for executives, lowering misalignment risk .
- Change-of-control economics: No special CoC payments or equity acceleration for NEOs, reducing windfall risk .
- Insider trading arrangements: 10-K Item 9B reported none for the period, limiting pre-set trading plan disclosures; monitor Form 4s for any future plan adoptions .
Equity Ownership & Alignment (Supplemental)
- Ownership as % of shares outstanding: Not disclosed for Parekh in proxy; Apple enforces 3x salary ownership guideline for executive officers .
- Deferred compensation eligibility: Executive officers eligible for Apple’s Deferred Compensation Plan; no company match; investment choices mirror 401(k) options .
Investment Implications
- Strong alignment: TSR-based PSUs and long RSU vesting create multi-year alignment with shareholder returns and retention, while prohibitions on hedging/pledging and clawbacks reduce governance risk .
- Upcoming supply windows: Scheduled RSU tranches in April 2027/2028/2029 and PSU vest in Oct 2027 could create episodic selling pressure; monitor blackout windows and potential 10b5‑1 plan filings to gauge flow-through impact .
- Pay discipline: No CoC payments or guaranteed severance and modest FY2025 cash target in transition year suggest shareholder-friendly pay discipline; focus remains on long-term equity incentives .
- Execution signal: FY2025 financial outcomes (record revenue, EPS growth, Services and installed base records) support confidence in Parekh’s execution as CFO amid AI/service expansion and capital allocation continuity .