Apple Grants CEO Tim Cook First Major Stock Package Since 2011

Apple's move brings Cook's compensation timeline into line with other executives at the company.

By Reuters | Updated: 30 September 2020 10:02 IST

Apple Grants CEO Tim Cook First Major Stock Package Since 2011

In October 2023, Cook will also be eligible to receive additional units based on performance

Highlights

Cook is in the ninth year of his 10-year grant from 2011
Apple's stock closed at $114.09 on Tuesday
Apple awarded a similar grant to Chief Operating Office Jeff Williams

Apple on Tuesday granted CEO Tim Cook 333,987 restricted stock units, with a possibility to earn as many as 667,974 more if he hits performance targets, in the executive's first stock grant since 2011.

“Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity," Apple's board of directors said in a statement.

"For the first time in nearly a decade, we are awarding Tim a new stock grant that will vest over time in recognition of his outstanding leadership and with great optimism for Apple's future as he carries these efforts forward.”

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

Cook is in the ninth year of his 10-year grant from 2011. Each restricted stock unit conveys the right to one common share when it vests.

Apple's stock closed at $114.09 (roughly Rs. 8,400) on Tuesday, which puts the value of the units at $38.1 million (roughly Rs. 281 crores) at Tuesday's price. But they will be more valuable if Apple's stock price rises by the time they vest. One-third of the units will vest on April 1, 2023 with another third vesting in 2024 and the final third in 2025.

In October 2023, Cook will also be eligible to receive additional units based on performance. The target amount is 333,987 units, but the total could vary between none and double that amount based on Apple's relative total shareholder return from fiscal years 2021 through 2023, according to a regulatory filing.

Apple CEO Tim Cook Says Fires, Storms Show Impact of Climate Change

Apple's move brings Cook's compensation timeline into line with other executives at the company. Apple on Tuesday also awarded a similar grant to Chief Operating Office Jeff Williams, who will receive 89,064 restricted stock units on the same terms as Cook, including the possibility of performance-based units.

Cook told Fortune magazine in 2015 that he plans to donate his wealth to charity.

Tim Cook Joins the Billionaire Club as Apple Valuation Touches Historic High

Will Xbox Series S, PS5 Digital Edition fail in India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.