Tim Cook Reaches Five Years as Apple CEO, Unlocks Over $100 Million in Bonuses

cook_heroToday marks the fifth anniversary since Tim Cook was named Apple CEO on August 24, 2011, the same day that late co-founder Steve Jobs stepped down as chief executive for the final time and recommended the board of directors appoint Cook as his permanent successor.

Upon reaching the five-year mark, Cook has today unlocked previously awarded stock bonuses currently worth over $100 million. The bonuses are tied to both his tenure and Apple's performance under his leadership, including its total shareholder return relative to the S&P 500 index.

Cook's bonus includes 700,000 tenure-based restricted stock units that vested today as part of a larger compensation package of over 4.7 million shares awarded on August 24, 2011, in addition to his first of six annual installments of 280,000 tenure-based restricted stock units that vested today. The combined 980,000 shares are valued at nearly $106.7 million based on AAPL's closing price of $108.85 on Tuesday.

Cook's bonus could be even higher if Apple's total shareholder return is in the middle third or top third relative to other companies in the S&P 500 from August 25, 2013 through August 24, 2016. He will receive another 140,000 RSUs for middle third performance, or 280,000 RSUs for top third performance. AAPL has risen around 52% since August 25, 2013, while the S&P 500 has risen around 32% in the same time period, making at least a middle third finish a strong possibility.

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. Instead, the recipient gets shares of stock at a later date, generally only if they are still employed by the company. Cook personally requested that his award be modified to adhere to a more performance-based compensation system in 2013. Another 700,000 of his RSUs are scheduled to vest on August 24, 2021, plus 280,000 RSUs each August 24 through 2021.

Cook's net worth, assuming he remains with the company through August 24, 2021 and meets performance targets, is estimated to be over $500 million based on his current stock options and RSUs awarded. He has previously pledged to donate the vast majority of his wealth, including stock bonuses like these, to charities in his lifetime. In May 2015, for example, Cook donated approximately 50,000 shares of Apple stock, then worth approximately $6.5 million, to undisclosed charities.

Cook has overseen the launch of the Apple Watch, MacBook Pro with Retina display, ultra-thin 12-inch MacBook, iPad Pro, several iPhone and iPad models, Apple Maps, Apple Music, Apple Pay, Siri, and many other products and services since taking over the reigns in 2011. Apple became the world's most valuable company in 2012 under his leadership, and it continues to hold that title today. Apple stock has risen over 132% since Cook was appointed as CEO five years ago.

Update: Cook has netted another 280,000 shares of Apple stock, as the company returned 61% during the past three years, placing it in the top-performing third of the S&P 500 index, according to data compiled by Bloomberg. The additional shares were valued at approximately $30 million based on AAPL's closing price of $108.03 on Wednesday.

Tags: AAPL, Tim Cook

Top Rated Comments

chriscrowlee Avatar
98 months ago
And he's done a great job, despite what people have to say around these parts. :) Glad he's on board.
Mac holds less marketshare than ever in history.
iOS sinks to record low marketshare.
iPhone now makes up less marketshare than ever.
iPhone 7 looks like iPhone 6S, and iPhone 6S looks like iPhone 6.
MacBook Pro Line goes nearly 5 years and still no update.
iPad sales lagging industry.

Not a resume I'd want... sure Apple is profitable... but has been stagnant for a while in product. And the reason the company is successful is the coat-tails they're still riding from past successes.

Innovation is the name of the game, and without it, it's a boring and unsuccessful path when it comes to technology.
Score: 111 Votes (Like | Disagree)
jsmith189 Avatar
98 months ago
And he's done a great job, despite what people have to say around these parts. :) Glad he's on board.
Score: 56 Votes (Like | Disagree)
keysofanxiety Avatar
98 months ago

iPhone now makes up less marketshare than ever.
And the most sales of any one model.


iPhone 6S looks like iPhone 6.
That's why it's called the 6S. Like the 3GS looked like the 3G. 4S looked like the 4. 5S looked like the 5.


MacBook Pro Line goes nearly 5 years and still no update.
Just the non-Retina. This shouldn't come as any great surprise. You have to properly dig it out from the website as well.


iPad sales lagging industry.
Still more sales than any other tablet. Partership with IBM will vastly improve long term sales & functionality.


Innovation is the name of the game, and without it, it's a boring and unsuccessful path when it comes to technology.
You class 'innovation' as being synonymous with something that looks completely different. The Mac line has had more innovation in the last 5 years than it had from 2007-2011. While you're complaining, everybody else continues to use their Macs for their livelihood, and are simply waiting for a spec bump if they feel the need to upgrade.
Score: 46 Votes (Like | Disagree)
VAGDesign Avatar
98 months ago
Would be nice instead of bonuses to deliver new Mac Pros, new Displays and Pro software... just saying.
Score: 33 Votes (Like | Disagree)
otternonsense Avatar
98 months ago
Those news deserve a special edition watchband, no?
Score: 31 Votes (Like | Disagree)
MH01 Avatar
98 months ago
hmmmm product line stagnates, iPhone sales drop and Tim gets $100 million bonus.... There lies the problem. He can do very little and score a huge bonus .

Though well done Tim, you did not rock the boat and still managed to let the cogs turn over. Well played.
Score: 30 Votes (Like | Disagree)

Popular Stories

General Apps Messages

Apple Announces 'Groundbreaking' New Security Protocol for iMessage

Wednesday February 21, 2024 6:00 am PST by
Apple today announced a new post-quantum cryptographic protocol for iMessage called PQ3. Apple says this "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks." Apple believes the PQ3 protocol's protections "surpass those in all other widely deployed messaging apps," according to its blog post:Today we are announcing...
Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Six Reasons to Wait for Next Year's iPhone 17

Thursday February 22, 2024 4:20 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
iOS 17

iOS 17.4 Will Add These New Features to Your iPhone

Monday February 19, 2024 6:52 am PST by
Apple last month confirmed that iOS 17.4 will be released in March, and the update includes several new features and changes for the iPhone. Key new features in iOS 17.4 include major App Store changes in the EU and Apple Podcasts transcripts. The update also adds new emoji and includes preparations for the launch of next-generation CarPlay later this year. More details about the new...
Oled iPads and MackBook Pro Notch

Apple's OLED Roadmap: New iPad Mini, Foldable iPad Pro, and More

Wednesday February 21, 2024 5:29 am PST by
Apple is planning to launch at least nine new devices with OLED displays across the iPad and MacBook product lines, according to an updated forecast from research firm Omdia that sets out the company's plans in detail. As widely rumored, Apple's push to transition to OLED will apparently be jump-started by the release of new 11- and 13-inch iPad Pro models this year. The displays will...
Next Generation CarPlay Porsche 1

Apple Launching Next-Generation CarPlay This Year With These New Features

Wednesday February 21, 2024 2:03 pm PST by
Apple recently updated its website to confirm that the first vehicle models with next-generation CarPlay support will debut "in 2024." This wording is shown on Apple's regional websites for the U.S., Canada, Australia, New Zealand, and many other countries. The iOS 17.4 beta includes code-level references to eight new CarPlay apps:Auto Settings: This app will let you manage paired iPhones...
iPad Pro OLED Feature 2

Apple's Upcoming OLED iPad Pro Models Rumored to Be Much Thinner

Tuesday February 20, 2024 1:39 pm PST by
Apple is planning to update the iPad Air and iPad Pro lineups as soon as March, and the new iPad Pro models will be significantly thinner according to dimensions shared by 9to5Mac. Citing sources with knowledge of Apple's plans, the site claims that the larger version will be more than 1mm thinner. The current 12.9-inch iPad Pro measures in at 6.4mm thick, but the new model is said to be 5mm ...
Apple Sports App Preview Feature

'Apple Sports' App Announced With Personalized Scoreboards and More

Wednesday February 21, 2024 6:16 am PST by
Apple today announced "Apple Sports," a new free app that provides real-time statistics, scores, and more. Apple Sports features a personalized experience with a user's favorite leagues, tournaments, teams shown on an easy-to-read scoreboard. Users can navigate between scores and upcoming games, explore play-by-play information, team statistics, lineup details, and live betting odds, with...
volvo s60 drivers apple maps

iOS 17.4 Beta Adds CarPlay Option to Show Upcoming Maneuvers in Instrument Cluster

Tuesday February 20, 2024 10:47 am PST by
The fourth beta of iOS 17.4 that Apple released today adds a new CarPlay feature, according to the notes that Apple provided to developers. In supported CarPlay vehicles, there's now an Apple Maps option to show information about upcoming maneuvers in the instrument cluster. CarPlay users will be able to swap the display type between the main and instrument cluster by tapping on the map...