Jobs uses his Apple shares to pay taxes

Company withholds nearly $296 million, or 4.57 million of the CEO's restricted shares, to cover applicable taxes.

Dawn Kawamoto Former Staff writer, CNET News
Dawn Kawamoto covered enterprise security and financial news relating to technology for CNET News.
Dawn Kawamoto
Apple Computer CEO Steve Jobs is walking away this month with slightly more than half of the 10 million shares of restricted stock that the computer maker granted him.

The other chunk, which represents 4.57 million shares, or nearly $296 million, was withheld by Apple to pay for income taxes relating to the vested shares, according to filings with the U.S. Securities and Exchange Commission.

Uncle Sam walks away with millions of dollars, and Jobs doesn't do too badly, either.

The CEO still retains about 5.4 million shares, which were valued at nearly $351 million at the time of the transaction on March 19, according to the SEC filing.

Jobs was initially awarded the 10 million shares of restricted stock back in 2003, which had a three-year vesting cycle. The millions he could potentially reap from selling his vested stock would help cushion the $1 annual salary he has volunteered to accept as the company's CEO.