Apple CEO Tim Cook was vested with $115 million worth stock bounty as a performance award, according to recent US Securities and Exchange Commission Securities and Exchange Commission filing titled ‘STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES.’ Exceeding his performance in the capacity as Chief Executive Officer of Apple Inc., Tim Cook was vested with a total of 560,000 restricted stock units (RSU) informs 9to5Mac.
Corporate captains are rewarded with stock options besides their salaries and other perks that they are entitled to according to their agreed compensation packages. However, stock rewards or RSUs by far exceed all other compensation parameters for top company executives, the world over.
Cook Gets 560,000 Shares as Part of the Compensation Package
In Cook’s case, there were two parameters for consideration while awarding him the RSUs. One was remaining in on rolls (continued employment) and the second one is satisfying the performance parameters set by Apple Inc.
The filing reads,
“Mr. Cook’s award provides that if Apple’s relative TSR performance is within the top third of the companies that remain in the S&P 500 for the entire performance period, the 280,000 performance-based RSUs vest in full. Apple needed to achieve a TSR of at least 52.59% to outperform the middle third of the companies in the S&P 500 for the performance period, and at least 18.25% to outperform the bottom third of the companies. Apple’s TSR for the three-year period was 100.20%, which ranked 45th of the 430 companies that were included in the S&P 500 for the entire period and placed Apple in the 90th percentile. Therefore, all 280,000 of the RSUs subject to performance requirements vested.”
Thus, for both the above parameters, he was vested with 280,000 shares each making a total of 560,000 RSUs worth $115 million.
The filing also noted that 294,840 shares were withheld by Apple for tax purposes, while the remaining 265,160 units traded in three individual rounds on Monday. The share transaction valued at about $115 million was based on AAPL’s price on Tuesday.
Tim Cook – A Leader Par Excellence
Notably, last year too, Cook was awarded 560,000 shares worth $125 million as Apple posted strong growth and performance.
Under Cook’s stewardship, Apple has undertaken several bold initiatives and steps to pull up top and bottom lines. It has simultaneously tried to innovate and bring products of mass utility that highlights this world’s leading corporate giant.
Tim has also mastered the art of public and political engagement very well. His recent meeting with the US President Donald Trump to seek a 10% tariff waiver on imports from China with the President saying, “He calls me….,” is for all to see.
Finally, shall we say that Cook deservedly gets this part of his compensation package; for steering the Cupertino behemoth, and finally, driving the American Dream in these turbulent times?