cook heroApple CEO Tim Cook last Friday was awarded 560,000 shares of Apple stock as payment for his service as Apple's CEO and Apple's strong performance under his leadership.

Following the award, Cook this week sold more than 265,000 of those shares at prices ranging from $216.96 to $218.54, netting him nearly $57.8 million. The remaining 294,840 shares worth more than $63 million were withheld by Apple for taxes.

As with all transactions where Apple executives sell stock, the sale was done under a Rule 10b5-1 trading plan that was adopted on May 4, 2018.

The stock Cook received last week included 280,000 vested restricted stock units (RSUs) provided to him as part of his compensation as CEO and another 280,000 vested RSUs awarded because Apple achieved a higher shareholder return than at least two-thirds of other companies in the S&P from August 25, 2015 to August 24, 2018.

Mr. Cook's award provides that if Apple's relative TSR performance is within the top third of the companies that remain in the S&P 500 for the entire performance period, the 280,000 performance-based RSUs vest in full. If Apple's performance is in the middle third, the RSUs will be reduced by 50%, and if Apple's performance is in the bottom third, the RSUs will be reduced to zero. Apple needed to achieve a TSR of at least 56.23% to outperform the middle third of the companies in the S&P 500 for the performance period, and at least 19.94% to outperform the bottom third of the companies. Apple's TSR for the three-year period was 89.94%, which ranked 50th of the 423 companies that were included in the S&P 500 for the entire period and placed Apple in the 88th percentile. Therefore, all 280,000 of the RSUs subject to performance requirements vested.

Cook is set to receive an additional 560,000 shares each year for the next three years if he remains Apple's CEO and Apple's shareholder return continues to be among the top-third of companies in the S&P 500. Cook will also see 700,000 RSUs vest on August 24, 2021.

After selling the stock that he received this year, Cook continues to own 878,425 shares, worth close to $193 million at today's closing price of $219.70.

In the past, Cook has said that he plans to donate the majority of his fortune to charity. Cook last week donated almost $5 million worth of Apple stock to an unnamed charity.

Top Rated Comments

Xgm541 Avatar
73 months ago
Maybe he knows something the rest of us don't. 30 something yrs ago when Syntec higher ups started selling their shares, I did, good thing too, they went belly up
That's not how it works
Score: 18 Votes (Like | Disagree)
NachoGrande Avatar
73 months ago
Almost all sales of CEO's stocks are done on a schedule to avoid them being accused of selling on information.
Score: 17 Votes (Like | Disagree)
DocMultimedia Avatar
73 months ago
Well, that's a few more shares than I have. Guess he'll be able to afford a house in California for a few more years with that kind of money.
Score: 10 Votes (Like | Disagree)
B-Mc-C Avatar
73 months ago
I am no tax accountant, but wow, does that mean that he got taxed at a rate more than 50%??
Absolutely. In California, it doesn’t take very much income to put someone into the top tax brackets. For a single person, that’s 37% federal + 13.8% state + 3.8% ObamaCare Net Investment Income Tax. Highway robbery.
Score: 9 Votes (Like | Disagree)
KPandian1 Avatar
73 months ago
I am no tax accountant, but wow, does that mean that he got taxed at a rate more than 50%??
The typical sale of stocks in a person's portfolio is that the oldest is sold first. So, I'm sure he had 265,000 Apple share 366 days ago.

This means he will be taxed at 15%.


In California, it doesn’t take very much income to put someone into the top tax brackets.
Don't bash California on this, the tax in this sale has nothing to do with the state the person lives in.
Score: 7 Votes (Like | Disagree)
mtneer Avatar
73 months ago

Following the award, Cook this week sold ('https://www.sec.gov/Archives/edgar/data/320193/000032019318000115/xslF345X03/wf-form4_153549547286956.xml') more than 265,000 of those shares at prices ranging from $216.96 to $218.54, netting him nearly $57.8 million. The remaining 294,840 shares worth more than $63 million were withheld by Apple for taxes.

I am no tax accountant, but wow, does that mean that he got taxed at a rate more than 50%??
Score: 7 Votes (Like | Disagree)

Popular Stories

apple tv 4k yellow bg feature

When to Expect a New Apple TV to Launch

Tuesday April 9, 2024 8:30 am PDT by
It has been nearly a year and a half since the current Apple TV was released, so the device is becoming due for a hardware upgrade. Below, we recap rumors about the next Apple TV, including potential features and launch timing. The current model is the third-generation Apple TV 4K, announced in October 2022. Key new features compared to the previous model from 2021 include a faster A15...
iPhone 16 Camera Lozenge 2 Colors

iPhone 16 Plus Rumored to Come in These 7 Colors

Wednesday April 10, 2024 3:52 am PDT by
Apple's iPhone 16 Plus may come in seven colors that either build upon the existing five colors in the standard iPhone 15 lineup or recast them in a new finish, based on a new rumor out of China. According to the Weibo-based leaker Fixed focus digital, Apple's upcoming larger 6.7-inch iPhone 16 Plus model will come in the following colors, compared to the colors currently available for the...
iPhone 16 Pro Sizes Feature

Alleged iPhone 16 Battery Details Show Smaller Capacity for One Model

Tuesday April 9, 2024 3:46 am PDT by
Apple's upcoming iPhone 16 lineup will feature bigger battery capacities compared to previous-generation models with the exception of the iPhone 16 Plus, which will have a smaller battery than its predecessor. That's according to the Chinese Weibo-based leaker OvO Baby Sauce OvO, a relatively new source of supply chain leaks with an as-yet unproven track record for accuracy. The iPhone 16 ...
apple silicon feature joeblue

Macs to Get AI-Focused M4 Chips Starting in Late 2024

Thursday April 11, 2024 10:10 am PDT by
Apple will begin updating its Mac lineup with M4 chips in late 2024, according to Bloomberg's Mark Gurman. The M4 chip will be focused on improving performance for artificial intelligence capabilities. Last year, Apple introduced the M3, M3 Pro, and M3 Max chips all at once in October, so it's possible we could see the M4 lineup come during the same time frame. Gurman says that the entire...
M3 iPad Feature 3

Apple Event for New iPads Still Considered 'Unlikely' Following Delays

Tuesday April 9, 2024 6:37 am PDT by
Apple is "unlikely" to hold an event to announce new iPad Pro and iPad Air models, according to sources cited by Taiwanese supply chain publication DigiTimes. Bloomberg's Mark Gurman already said Apple was not planning to hold an event for the new iPads, but he made this claim back in early March, before it was reported that the devices were postponed due to manufacturing delays. With the...
iOS 18 WWDC 24 Feature 2

iOS 18 May Feature All-New 'Safari Browsing Assistant'

Wednesday April 10, 2024 6:11 am PDT by
iOS 18 will apparently feature a new Safari browsing assistant, according to backend code on Apple's servers discovered by Nicolás Álvarez. MacRumors contributor Aaron Perris confirmed that the code exists, but not many details are known at this time. Álvarez said it seems like the browsing assistant will use iCloud Private Relay's infrastructure to send relevant data to Apple in a...