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Apple Awards Tim Cook 1,000,000 Shares of Stock as CEO Bonus to Stay Until 2021

Friday August 26, 2011 2:17 pm PDT by Jordan Golson

Apple filed a form 8-K with the SEC because of the changes in corporate leadership at the company. An 8-K is the “current report” companies must file with the SEC to announce major events that shareholders should know about.

In this case, the form notifies investors of the resignation of Steve Jobs as CEO; Jobs' appointment as Chairman of the Board; COO Tim Cook's promotion to CEO; and the appointment of Cook to the Board.

Additionally:

In connection with Mr. Cook's appointment as Chief Executive Officer, the Board awarded Mr. Cook 1,000,000 restricted stock units. Fifty percent of the restricted stock units are scheduled to vest on each of August 24, 2016 and August 24, 2021, subject to Mr. Cook's continued employment with Apple through each such date.

This stock award is worth just over $383 million at current prices.

A restricted stock unit, or RSU, is a form of compensation valued in terms of company stock, but the stock is not issued at the time of the grant. In Cook's case, he's getting a promise from Apple to deliver him 500,000 shares of Apple stock in 2016, and 500,000 more shares in 2021 — as long as he stays employed at the company.

In 2010, as COO, Tim Cook received $58 million in salary, bonus and other stock awards.

Top Rated Comments

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adcx64

38 months ago

I still want Steve back.....

Rating: 21 Votes

ArcaneDevice

38 months ago

I wonder if he plans to take Steve's $1 salary?

Somehow I don't think he will.

Rating: 19 Votes

Bonch

38 months ago

He should use it to buy firearms for the poor.

Rating: 18 Votes

topodisc

38 months ago

Restricted Stock Units (RSUs) that vest and are only paid after a period of time ensure that the person is highly motivated to stay. They want Tim Cook to stick around and ensure the continued success of the company. After that, he is likely to sell only portions and even then, as CEO, he has only a few short windows of opportunity when he can sell stock and he must provide notice well in advance since he is subject to insider trading rules.

Rating: 12 Votes

sumone

38 months ago

Tim doesn't seem like he has the same edginess that Steve has. I'm not all that excited with him as CEO.

Rating: 12 Votes

Mord

38 months ago

Their shares are worth about 383 bucks, is it just me or is 1,000,000 x 383 not 383 odd million?

edit: I see it's fixed now :)

Rating: 11 Votes

jlgolson

38 months ago

their shares are worth about 383 bucks, is it just me or is 1,000,000 x 383 not 383 odd million?

You're right, my math skills fail me.

Rating: 10 Votes

hsotnicam8002

38 months ago

He's earned it. May that continue.

How can you 'earn' that much? How can you work any harder than a refuse collector on $20K/annum? And consider earnings in the developing world. There is something wrong in the human mind. :(

Rating: 9 Votes

vitzr

38 months ago

Cook deserves every penny of this bonus.

He's done more behind the scenes, than many are aware of. Highly intelligent, experienced, and consistent, this man will make a stellar CEO.

Just what Apple needs, and the timing is perfect.

Tim Cook is very highly regarded within the ranks of Apple employees. That in and of itself is a very critical advantage.

This move bodes very well for Apple today, tomorrow and well into the future.

The powers to be (not just Steve) have shown great wisdom with this choice.

Rating: 8 Votes

TwitchOSX

38 months ago

How can you 'earn' that much? How can you work any harder than a refuse collector on $20K/annum? And consider earnings in the developing world. There is something wrong in the human mind. :(

Well.. what he's doing is a LITTLE more important than picking up trash.

Rating: 8 Votes

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