Apple[1], for example, has performance based RSU’s for its executives. RSU’s vest over 3-4 years and the number granted is dependent on Apple’s performance rela

Apple[1], for example, has performance based RSU’s for its executives. RSU’s vest over 3-4 years and the number granted is dependent on Apple’s performance relative to the S&P. Stock prices theoretically have future cash flows built in but markets are inefficient. In this case, if Broadcom starts losing customers in 2027 and revenue declines 5%, it would get hammered in the market at that point in time, punished much more than the 5% drop. [1] From Apple’s SEC filing: The value received by our named executive officers in 2022 from long-term equity incentives reflects exceptional stock price performance over the applicable vesting periods. As a result, for the applicable performance periods, performance-based RSUs vested at 200% of target for our named executive officers based on Apple’s TSR relative to other companies in the S&P 500 (“Relative TSR”), which was at: • the 96th percentile for performance-based RSUs held by Ms. Adams, Mr. Maestri, and Mr. Williams, and • the 99th percentile for performance-based RSUs held by Ms. O’Brien. Mr. Cook was granted an equity award with 75% performance-based vesting and 25% time-based vesting