Good morning.
Citizen Apple yesterday announced a massive plan to invest in the U.S. and provide bonuses to employees, partly in response to the new tax law.
Here are the details:
- Apple will invest $30 billion in the U.S. and create 20,000 new jobs. Much of the new investment will be in data centers.
- The company will make about $38 billion in one-time tax payments as it brings home some of the $250 billion it has in cash stashed overseas.
- All told, the company says it will spend $350 billion in the U.S. in the next five years.
- The company also said it will open a new campus, but didn’t say where—joining Amazon in triggering bids by cities eager for the honor.
It’s hard to know how much of this spending in the U.S. would have occurred even without the tax cut. But it’s still an encouraging sign that companies feel the need to show they are investing in America. Investors also applauded, bidding up the stock 1.7% in the belief the investments will enable the company to increase stock buybacks and dividends without criticism.
Separately, Apple also said it is giving $2,500 stock bonuses to most of its 125,000 employees. That’s a generous reaction to the tax cut, but it’s probably also a useful retention scheme in an economy where unemployment has fallen to 4.1%. The intensifying battle for talent in the U.S. is the topic of February’s cover story in Fortune magazine, which you can read online this morning here and here.
More news below.
| Alan Murray | |
| @alansmurray | |
| alan.murray@fortune.com |
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This edition of CEO Daily was edited by Claire Zillman. Find previous editions here, and sign up for other Fortune newsletters here.
