cook heroApple CEO Tim Cook today sold more than $43 million worth of Apple stock, according to documents filed with the United States Securities and Exchange Commission.

Cook sold 268,623 shares at prices ranging from $159.27 to $161.43, earning more than $43 million, all of which is held in a trust. Cook's stock was sold as part of a pre-arranged Rule 10b5-1 Plan set up in May of 2017, according to the SEC.

Cook sold the stock after 560,000 RSUs vested on August 24, 2017. 280,000 of the restricted stock units he received were time based, while another 280,000 were performance based.

A restricted stock unit (aka RSU) is compensation valued in terms of a company's stock, but the stock is not issued at the time of the grant. Instead, the recipient receives the stock at a later date, a method generally used to make sure employees stay with a company for a set period of time.

While Cook was originally set to receive 1,000,000 RSUs awarded over a 10-year period in two lump sums (the 1,000,000 share number was prior to Apple's 2014 7-1 stock split -- it's now 7,000,000), a 2013 amendment modified how his stock is awarded, shifting it from a time-based system to a performance-based system with the RSUs doled out over a 10-year period from 2011 to 2021.

Cook received one lump sum of 700,000 RSUs in 2016, and will receive another 700,000 in 2021. The remaining 5,600,000 RSUs are awarded based on Apple's performance compared to other companies in the S&P 500.

If Apple's total shareholder return is within the top third of the best performing companies in the S&P 500, Cook receives all 560,000 RSUs in a given year. If the company's performance is in the middle third, Cook's award is reduced by 25 percent, and if Apple happens to fall in the bottom third, Cook's award is reduced by 50 percent.

As Apple performed well this year, Cook received all 560,000 shares in 2017. In addition to the stock Cook sold, Apple also sold 291,377 shares worth $46 million on Cook's behalf to settle his tax liability for the RSUs.

Top Rated Comments

Pipper99 Avatar
50 months ago
Steve Jobs would never have sold Tim Cook's stock.
Score: 42 Votes (Like | Disagree)
OldSchoolMacGuy Avatar
50 months ago
Have said it before, will say it again ... the iPhone 8 "without" Touch ID is a looming catastrophe ! ... Tim Cook very-likely knows this ... it's the single biggest R&D gamble Apple has made in a long, long time ... Apple made a Tech Gamble on Touch ID (under Glass), and it didn't pay off ... at least by the Intro of the iPhone 8 ... as such, IMO, only the Extremely Young and Extremely Dumb will buy-into the iPhone 8 sales pitch (that Facial Recognition / Face ID is the greatest thing since indoor plumbing) ... most will balk at the iPhone 8's price AND certainly w/o Touch ID (under Glass).

If I was running Apple I way announce the iPhone 8 on September 12th, but also state that we're NOT going to market UNTIL Touch ID (under Glass) is functional & secure to our satisfaction.

NO ONE should be surprised if Apple is trading under $100/share within 3 months after September 12th, if Apple chooses the wrong course of action.
That's the silliest nonsense I've ever seen posted on MR. No one thinks Apple will trade for under $100/share in 3 months, no matter what the announcement later this month. Believing that would show a complete lack of knowledge of business, sales, and reality.

There's a reason you aren't running Apple and it's clear by your statement that you aren't in a position to run any successful business.
Score: 20 Votes (Like | Disagree)
garirry Avatar
50 months ago
I wish I could sell $43M in anything.
Score: 19 Votes (Like | Disagree)
OldSchoolMacGuy Avatar
50 months ago
Aren’t there tax reasons he sells stock at certain times?
Yes. Every time one of these articles gets posted, idiots think Apple is doomed. What they don't understand is that executives at all companies can only sell stock at certain times and must disclose it in advance. They can't simply dump their stock right before a product release because they think things look bad. They have to file their intentions to sell months in advance in most cases.

Tim has sold stock before, just as Zuckerberg and every other CEO at most long established companies have done. Cook still has over $100 million in Apple stock. If he believed they were doomed, why wouldn't he sell it all instead of holding on to the majority?
Score: 19 Votes (Like | Disagree)
OPBD Avatar
50 months ago
This was part of a Rule 10b5-1 trading plan which was set in motion earlier this year and shares will be sold automatically per the trading plan so that Tim does not run afoul of insider trading rules. He still owns over $470 million of Apple stock so this sale is less than 10% of his holdings.
Score: 13 Votes (Like | Disagree)
Michael Scrip Avatar
50 months ago
Yes. Every time one of these articles gets posted, idiots think Apple is doomed. What they don't understand is that executives at all companies can only sell stock at certain times and must disclose it in advance.
MacRumors should start every one of these article with that:

"Tim Cook occasionally schedules stock-selling... just like every other CEO..."

:P
Score: 11 Votes (Like | Disagree)

Top Stories

apple watch 6s 202009

Bloomberg: Apple Watch Series 7 to Feature Thinner Screen Bezels, Faster Processor, and Updated Ultra Wideband Tech

Monday June 14, 2021 3:41 am PDT by
This year's Apple Watch Series 7 is likely to have thinner display bezels and use a new lamination technique that brings the display closer to the front cover, according to Bloomberg's Mark Gurman. From the report: The Cupertino, California-based tech giant is planning to refresh the line this year -- with a model likely dubbed the Apple Watch Series 7 -- by adding a faster processor,...
studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
m1 imac back

Some M1 iMac Models Shipping With Crooked Mountings

Monday June 14, 2021 12:50 pm PDT by
Some M1 iMacs appear to have a manufacturing defect that causes the display to be mounted on the stand in a way that's not perfectly aligned, leading to a crooked display. YouTuber iPhonedo over the weekend published a review of the M1 iMac, and he found that his machine appeared to be tilted on one side, a mounting disparity that was visibly noticeable and proved with a ruler. Another...
ios 15 home screen icons

iOS 15 Lets You Drag and Drop Images and Text Across Apps

Saturday June 12, 2021 3:17 pm PDT by
Apple this week previewed iOS 15, which is available now in beta for developers ahead of a public release later this year. One smaller but useful new feature added is the ability to drag and drop images, text, files, and more across apps on iPhone. MacStories editor-in-chief Federico Viticci demonstrated the new feature in a tweet: Using cross-app drag and drop on iPhone in iOS 15. Finally 🎉 #WW ...
ipad iphone duo ios 12

Apple Releases iOS and iPadOS 12.5.4 Security Fix for Older iPhones and iPads

Monday June 14, 2021 10:15 am PDT by
Apple today released new iOS and iPadOS 12.5.4 updates, with the new software aimed at older devices that are unable to run the iOS 14 update that's available on modern devices. The iOS and iPadOS 12.5.4 updates can be downloaded for free and the software is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General > Software...
apple new iphone case colors

Apple Releases New Sunflower, Cloud Blue and Electric Orange iPhone 12 Cases

Monday June 14, 2021 11:12 am PDT by
Apple today released silicone iPhone cases for the iPhone 12, 12 Pro, 12 Pro Max, and 12 mini in a series of new colors that include sunflower, cloud blue, and electric orange. Sunflower is a bright yellow shade, cloud blue is a soft, light blue, and electric orange is a bright orange that's darker than the kumquat color and more orange than pink citrus. The new cases are priced starting...
files app ipados 15

iPadOS 15: Files App Gains NTFS Support, Progress Indicator, and More

Tuesday June 15, 2021 3:41 am PDT by
Apple in iPadOS 15 has added the ability to access NTFS-formatted media from within the Files app. The additional support for the Windows-related format, first discovered by YouTuber Steven Fjordstrøm, is read-only, so like on macOS you can't modify files stored on NTFS devices, but you can at least copy any data on them for working on elsewhere on your iPad. The Files app has also gotten a...
apple virtual game controller ios 15

Apple Makes New On-Screen Game Controller Available to Developers on iOS 15 and iPadOS 15

Saturday June 12, 2021 12:36 pm PDT by
During the Platforms State of the Union at WWDC this week, Apple unveiled a new API for iOS 15 and iPadOS 15 that enables developers to implement an on-screen virtual game controller in their iPhone and iPad games with just a few lines of code. While many iPhone and iPad games already offer on-screen controls, Apple's new virtual game controller is available to all developers, easy to add,...
apple store palo alto

Apple Stores to Drop Mask Requirement for Vaccinated Customers This Week

Sunday June 13, 2021 11:31 am PDT by
Apple will no longer require vaccinated customers to wear masks inside their retail stores in the U.S, a major shift in policy compared to last month, according to Bloomberg. The new change, expected to go into effect on Tuesday, will no longer require customers who have been fully vaccinated against COVID-19 to wear masks inside Apple Stores in the United States. Bloomberg notes that Apple...
nomad airtag wallet card 2

Nomad's Latest Accessory Makes It Easier to Put an AirTag in Your Wallet

Monday June 14, 2021 12:00 pm PDT by
Nomad, known for its range of accessories designed for Apple devices, today announced the Card for AirTag, which is designed to make it easier for an AirTag to fit inside a wallet for tracking purposes. With Card for AirTag, an AirTag fits inside the middle of a card-shaped holder that's then meant to fit inside of a wallet. According to Nomad, the design offers a smooth, uniform shape that...