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: Tim Cook, AAPL

Top Rated Comments

chriscrowlee Avatar
64 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
64 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
64 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
64 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
64 months ago
Those news deserve a special edition watchband, no?
Score: 31 Votes (Like | Disagree)
MH01 Avatar
64 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)

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