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

timcookceoApple 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.

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Top Rated Comments

ArcaneDevice Avatar
166 months ago
I wonder if he plans to take Steve's $1 salary?

Somehow I don't think he will.
Score: 16 Votes (Like | Disagree)
adcx64 Avatar
166 months ago
I still want Steve back.....
Score: 16 Votes (Like | Disagree)
topodisc Avatar
166 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.
Score: 12 Votes (Like | Disagree)
Mord Avatar
166 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 :)
Score: 10 Votes (Like | Disagree)
cantthinkofone Avatar
166 months ago
Agreed. I make 4x that and hardly work at all. $400K is not a lot of dough.

Where the f are you from that 400k isn't a lot of dough? :eek:

If I had 100k a year job right now I would have everything I could ever want and have a retirement setup in about 10 years.
Score: 7 Votes (Like | Disagree)
sumone Avatar
166 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.
Score: 7 Votes (Like | Disagree)