Apple announces Chief Financial Officer transition

Rhea-AI Summary

Apple (AAPL) has announced a significant leadership transition, with Chief Financial Officer Luca Maestri stepping down from his role on January 1, 2025. Maestri will continue to lead Corporate Services teams, reporting to CEO Tim Cook. Kevan Parekh, current Vice President of Financial Planning and Analysis, will become the new CFO and join the executive team.

During Maestri's tenure as CFO, Apple's revenue more than doubled, with services revenue growing over five times. Parekh, an 11-year Apple veteran, brings extensive experience in financial leadership roles both at Apple and previous companies like Thomson Reuters and General Motors.

This planned succession aims to ensure continuity in Apple's financial leadership and strategy.

Positive

• Revenue more than doubled during Maestri's tenure as CFO
• Services revenue grew over five times under Maestri's leadership
• Smooth transition plan with internal promotion of experienced executive Kevan Parekh to CFO role
• Maestri will continue to lead Corporate Services teams, ensuring continuity in key areas

Negative

• Departure of long-standing CFO Luca Maestri from his current role

Insights

Financial Analyst

This leadership transition at Apple, while significant, is unlikely to cause major disruptions. Luca Maestri's continued involvement in corporate services ensures continuity, while Kevan Parekh's promotion from within maintains institutional knowledge. The 2x revenue growth and 5x services revenue increase under Maestri's tenure are impressive, setting a high bar for Parekh. However, the long transition period until January 2025 allows for a smooth handover. Investors should monitor for any shifts in financial strategy or capital allocation under Parekh's leadership, but overall, this change appears well-planned and shouldn't significantly impact Apple's financial trajectory in the short term.

Market Research Analyst

This CFO transition at Apple is strategically timed and well-communicated. The market typically reacts cautiously to C-suite changes, but several factors here mitigate potential concerns: 1) The long notice period, 2) Maestri's continued involvement and 3) Parekh's extensive experience within Apple. The emphasis on Parekh's technical background (electrical engineering) and global experience aligns with Apple's focus on innovation and international markets. While not immediately market-moving, this transition could signal subtle shifts in Apple's financial priorities or reporting style. Investors and analysts should pay close attention to Parekh's first earnings call and any changes in guidance or capital return policies in the coming years.

Tech Industry Expert

This CFO transition at Apple is noteworthy for its careful orchestration and internal promotion strategy. Kevan Parekh's background in Financial Planning and Analysis suggests a potential focus on optimizing Apple's financial performance and forecasting capabilities. His experience with Investor Relations could also lead to enhanced communication with shareholders. The mention of Parekh's engineering background is intriguing, potentially indicating a CFO more attuned to Apple's technical innovations and R&D investments. As Apple continues to diversify its revenue streams beyond hardware, Parekh's experience with services and marketing finance could prove valuable. This transition appears designed to maintain financial stability while potentially bringing fresh perspectives to Apple's financial strategy.

CUPERTINO, Calif.--(BUSINESS WIRE)-- Apple® today announced that Chief Financial Officer Luca Maestri will transition from his role on January 1, 2025. Maestri will continue to lead the Corporate Services teams, including information systems and technology, information security, and real estate and development, reporting to Apple CEO Tim Cook. As part of a planned succession, Kevan Parekh, Apple’s Vice President of Financial Planning and Analysis, will become Chief Financial Officer and join the executive team.

“Luca has been an extraordinary partner in managing Apple for the long term. He has been instrumental in improving and driving the company’s financial performance, engaging with shareholders, and instilling financial discipline across every part of Apple. We’re fortunate that we will continue to benefit from the leadership and insight that have been the hallmark of his tenure at the company,” said Tim Cook, Apple’s CEO.

“For more than a decade, Kevan has been an indispensable member of Apple’s finance leadership team, and he understands the company inside and out. His sharp intellect, wise judgment, and financial brilliance make him the perfect choice to be Apple’s next CFO.”

During his time as CFO, 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.

“It is the greatest privilege of my professional life to serve the world’s most innovative and admired company, and to work side by side with a leader as inspirational as Tim Cook,” said Maestri. “I’m looking forward to the next stage of my time at Apple, and I have enormous confidence in Kevan as he prepares to take the reins as CFO. He is truly exceptional, has a deep love for Apple and its mission, and he embodies the leadership, judgment, and values that are so important to this role.”

Parekh has been at Apple for 11 years and currently leads Financial Planning and Analysis, G&A and Benefits Finance, Investor Relations, and Market Research. Prior to this role, Parekh led Worldwide Sales, Retail, and Marketing Finance. He began his tenure leading the financial support of Apple’s Product Marketing, Internet Sales and Services, and Engineering teams.

Before joining Apple, Parekh held various senior leadership roles at Thomson Reuters and General Motors, where he also had extensive global experience. Parekh is an electrical engineer with a Bachelor’s of Science from the University of Michigan and an MBA from the University of Chicago.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, AirPods, Apple Watch, and Apple Vision Pro. Apple’s six software platforms — iOS, iPadOS, macOS, watchOS, visionOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, iCloud, and Apple TV+. Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or email Apple’s Media Helpline at media.help@apple.com.

© 2024 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240826777589/en/

Press Contact:

Josh Rosenstock

Apple

jrosenstock@apple.com

(408) 862-1142

Investor Relations Contact:

Suhasini Chandramouli

Apple

suhasini@apple.com

(408) 974-3123

Source: Apple Inc.

FAQ

When will Luca Maestri step down as Apple's CFO?

Luca Maestri will transition from his role as Apple's CFO on January 1, 2025.

Who will be Apple's new CFO after Luca Maestri?

Kevan Parekh, currently Apple's Vice President of Financial Planning and Analysis, will become the new CFO.

How did Apple's revenue change during Luca Maestri's tenure as CFO?

During Maestri's time as CFO, Apple's revenue more than doubled, with services revenue growing over five times.

What role will Luca Maestri have at Apple after stepping down as CFO?

Maestri will continue to lead the Corporate Services teams, including information systems and technology, information security, and real estate and development, reporting to CEO Tim Cook.