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Businesses Apple

Apple's CFO Steps Down Following a 10-Year Run (theverge.com) 31

Posted by BeauHD from the musical-chairs dept.
Apple announced that CFO Luca Maestri will step down at the start of next year, transitioning to head of its corporate services team to lead "information systems and technology, information security, and real estate and development." Kevan Parekh will take over as CFO. The Verge reports: Maestri joined Apple in 2013 after serving as the CFO of Xerox. He became the CFO just one year later, replacing Peter Oppenheimer. CNBC notes that when he took over, Apple's annual revenue was $183 billion, and last year, it reached $383 billion. Apple also announced an expansion to its share repurchase program to $90 billion, which Maestri would oversee.

This spring, Apple announced it would increase the amount from $90 billion to $110 billion, breaking its own record of $100 billion. It also reported an increase in revenue from its services business of 14 percent, even as sales of iPhones and iPads were down from the previous year. In Apple's announcement, it said, "...Maestri enabled essential investments and practiced robust financial discipline, which together helped the company more than double its revenue, with services revenue growing more than five times."

Kevan Parekh, Apple's vice president of financial planning and analysis, will take Maestri's place managing the finances of the now $3 trillion company. Parekh has been at Apple for 11 years and previously worked in senior leadership positions at Thomson Reuters and General Motors. Last week, Apple announced that it's splitting its App Store group into two teams, with App Store vice president Matt Fischer leaving the role in October.
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Apple's CFO Steps Down Following a 10-Year Run More

Apple's CFO Steps Down Following a 10-Year Run

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  • I kinda wonder to what extent the CFO matters to profitability. I mean, accounting more or less what it is. What does a CFO actually do that affects profitability?

    • Re:Why does it matter? (Score:4, Insightful)

      by abulafia ( 7826 ) on Tuesday August 27, 2024 @09:27PM (#64742000)

      Don't confuse accounting with finance.

      Accounting is the bean counting. Finance is the complicated games at the intersection of economic activity and the legal system that ensure the rich keep getting richer.

    • Re: (Score:2)

      by jezwel ( 2451108 )
      They're continuing to buyback shares, reducing shares, which increases profitability per share, driving the share price higher. That affects the C-suite payouts as they generally receive both salary and shares in a package.
      Back OT though, perhaps approving some purchasing of companies that assisted with increasing profits.
      • Comment removed based on user account deletion

      • Re: (Score:2)

        by Hadlock ( 143607 )

        More importantly, stock buy backs increase shareholder value, and are tax advantaged compared to dividends. When your company can't use profits to grow, they use profits to increase shareholder value in other ways.
         
        You might as well call him Chief Shareholder Value Officer
         
        Doing stock buybacks isn't ground breaking, it's what you do when Chief Product Officer has run out of ideas.

        • "tax advantaged compared to dividend"

          Only if you don't reinvest dividends. That makes dividends the more flexible option. You can reinvest (essentially a personal stock buyback), or you can generate cash flow.

          For mature companies with lots of long term holders (LTCG), dividends should be a major part of the package.

          For growth stocks, buybacks seem more sensible than issuing a one-time dividend, which your investors can't rely on.

          • you have to take profits every year with dividends. with stock they're unrealized gains and you have more control over when you realize those gains. furthermore long term capital gains taxes are lower than dividends. when dividends started getting taxed differently you immediately saw companies begin stock buybacks. regardless, stock buy backs mean that the company has run out of ideas on how to continue to grow

    • It depends on the company.

      The more cash on hand, the more you need a good CFO to manage your assets. Think of the banks that went under because they put their cash in long term bonds instead of short term and so couldn't cover withdrawals without a loss. That's the type of shit a good CFO would never let happen.

      Then there's macro-economic planning. You need someone who understands the economy and how it impacts your business. Secular trends might mean you need to start stockpiling for financial winter. Do t

  • Could we get more stories about heroic programmers and engineers and less C-level worship. Mother fuck a CFO. I never knew his name and still don't want to. How about Open Source? License wars, exciting packages, new interesting distros, that kind of thing? Compilers? Hardware? Like man, I'm starting to forget why the fuck Slashot even exists, now. We haven't had a good battle over BSD & GPL or systemd in weeks. FFS, nobody cares about executives unless they are talented engineers or coders. At least, I
  • Was I the only person who saw that and immediately looked to see if Xerox was still in business? Spoiler, it is. Given how few tech companies that have been around that long - especially those whose name is synonymous with an activity or specific type of technology - are still around, I really figured they went the way of Kodak and quietly folded some time in the past.

  • Breaking news! Company fat cat changes role.

    *Yawn*

    News for nerd indeed...

  • Stock Buybacks are one of the number one reasons why Elizabeth Warren & Bernie Sanders are pushing to break up big tech companies. Increasing stock buybacks from $90B / year to $110B per year is just begging the feds to break up Apple. Inflating the stock value may make staff with stock happy, but it doesn't improve the quality of work of the creativity & new ideas that a tech giant needs for designing & manufacturing valuable new products and services. Apple has earned the scorn & derision

    • Stock buybacks are a great way for a company to invest in their own future. If the market is undervaluing you, it's the most sane thing to do.

      And for late stage growth companies (like $T tech companies), they are not able to efficiently spend their cash. For example, MSFT is hands down one of the best possible investments you can make. So if Microsoft is sitting on cash, every dollar is losing value compared to MSFT. Any responsible company is going to invest that cash. And given there are almost no investm

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