Apple's Cook awarded $58M worth of AAPL stock for meeting performance goals, sells none

Posted:
in General Discussion edited August 2015
Apple CEO Tim Cook on Monday acquired 560,000 vested restricted stock units, split evenly between time- and performance-based awards, worth nearly $58 million, according to a U.S. Securities and Exchange Commission filing.




As noted in the SEC document, Cook chose not to sell any vested RSUs, though 290,836 shares were automatically withheld by Apple to comply with minimum statutory tax withholding requirements. Given Monday's closing price of $103.12, the remaining shares are worth roughly $29 million. In total, Cook has accumulated more than 1.17 million owned Apple shares which, if sold today, would be worth almost $121.4 million.

To receive a fully vested award, Cook had to satisfy performance metrics related to Apple's total shareholder return relative to other firms listed in the S&P 500 during a two-year period between Aug. 25, 2013 and Aug. 24, 2015, the beginning value of which calculated by averaging AAPL's closing price for 20 trading days prior to the 2013 start date. Adjusted for dividends and a 7-to-1 stock split in 2014, starting value was calculated at $68.56 per share. The ending value, set at $121.18 and adjusted for dividends, was subsequently calculated by averaging AAPL closing prices for the 20 days leading up to Aug. 24, 2015.

Contractual stipulations specified Cook's RSU award would vest in full if TSR performance fell within the top third of companies that remained in the S&P 500 over the observed two-year period. According to the filing, Apple's TSR performance of 76.76 percent ranked 46th of 458 companies, putting it in the 90th percentile. If Apple ended up in the middle or bottom third, the award would have been reduced to 50 percent or zero, respectively.

As per Cook's original compensation plan, there are 4,760,000 outstanding RSUs scheduled to vest in 700,000-unit batches on Aug. 24 in 2016 and 2021. Two 1.68 million-unit chunks will vest in six annual installments starting on Aug. 24, 2016, one of which being contingent on TSR performance.
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Comments

  • Reply 1 of 85
    Cue the conspiracy theorists linking this to Cook's email to Cramer yesterday.

    Nothing to see here, move along....
  • Reply 2 of 85
    But but but Tim Cook has mismanaged Apple and botched the Watch's retail launch Steve Jobs would never let this happen I'm really worried about Apple's future I'm not a troll here's a list of every Apple product I've ever owed.
  • Reply 3 of 85
    I get the impression that Mr. Cook isn't motivated by personal wealth accrual.

    Legacy is tops on his todo list every morning. Wealth is the symptom.
  • Reply 4 of 85
    Quote:

    Originally Posted by Suddenly Newton View Post



    But but but Tim Cook has mismanaged Apple and botched the Watch's retail launch Steve Jobs would never let this happen I'm really worried about Apple's future I'm not a troll here's a list of every Apple product I've ever owed.



    I don't live in the US and have little exposure to American media. Where does this nonsense come from?

  • Reply 5 of 85
    chasmchasm Posts: 3,274member
    Most executives are hopelessly overpaid on this front, but looking at Apple's balance sheet, he and the team certainly deserve a large amount of compensation. I'm not sure how much is too much with a company that sells 60 million iPhones a quarter, but despite the recent general market tremors its pretty indisputable that Cook has been, from a financial standpoint, really great for Apple.
  • Reply 6 of 85
    Let's look at the ridiculous amount withheld for taxes. That's insane.
  • Reply 7 of 85
    jfc1138jfc1138 Posts: 3,090member
    Well deserved.

    Happy for him.
  • Reply 8 of 85
    solipsismysolipsismy Posts: 5,099member
    I get the impression that Mr. Cook isn't motivated by personal wealth accrual.

    Legacy is tops on his todo list every morning. Wealth is the symptom.

    He's already pledged to give it all away.
  • Reply 9 of 85
    Too bad he couldn't share some of that with Retail employees. They deserve a decent pay raise.
  • Reply 10 of 85
    solipsismysolipsismy Posts: 5,099member
    Too bad he couldn't share some of that with Retail employees. They deserve a decent pay raise.

    1) Why not all Apple employees, like their CSRs, why only those working in retail?

    2) They have around 30,000 retail employees. If we take that and divide by that and then assume that they work on average about 30 hours per week to spread out full and part time we get about a dollar an hour. Note, that's before any taxes, any accounting costs, and it drops off in a year. Not exactly a sustainable model, and not exactly a good message when Cook is already underpaid compared to others in his position and for his performance in keeping Apple going which is why they Apple can have 30,000 retail employees with thousands(?) more each year.
  • Reply 11 of 85
    jungmarkjungmark Posts: 6,926member
    red rogers wrote: »

    I don't live in the US and have little exposure to American media. Where does this nonsense come from?

    Trolls, tech "journalists", and analysts.
  • Reply 12 of 85
    Too bad he couldn't share some of that with Retail employees. They deserve a decent pay raise.

    Are retail employees performing work for the pay level they agreed to when they were hired? Yes? Good. No one "deserves" to be paid more than they negotiated or accepted. Good Lord. Apple isn't a charity, nor is it Las Vegas.
  • Reply 13 of 85
    Quote:

    Originally Posted by Suddenly Newton View Post



    But but but Tim Cook has mismanaged Apple and botched the Watch's retail launch Steve Jobs would never let this happen I'm really worried about Apple's future I'm not a troll here's a list of every Apple product I've ever owed.



    But but but if we are basing competence on the level of compensation then I guess Steve Ballmer blows Cook away seeing he has a net worth of 21.5 Billion. Larry Page 29.2 Billion. But but but.....

  • Reply 14 of 85
    sirlance99sirlance99 Posts: 1,293member
    Too bad he couldn't share some of that with Retail employees. They deserve a decent pay raise.

    No they don't. They are getting paid what they agreed upon. They choose to work at Apple and most are happy with it.
  • Reply 15 of 85
    solipsismysolipsismy Posts: 5,099member
    sirlance99 wrote: »
    No they don't. They are getting paid what they agreed upon. They choose to work at Apple and most are happy with it.

    Despite his payout, Cook could get a lot more if he jumped to another company. It's almost like his goal as CEO isn't to be the richest man on Earth.
  • Reply 16 of 85
    paxmanpaxman Posts: 4,729member
    chasm wrote: »
    Most executives are hopelessly overpaid on this front, but looking at Apple's balance sheet, he and the team certainly deserve a large amount of compensation. I'm not sure how much is too much with a company that sells 60 million iPhones a quarter, but despite the recent general market tremors its pretty indisputable that Cook has been, from a financial standpoint, really great for Apple.
    No question Apple execs and TC in particular deserve recognition and ample reward. That doesn't mean that today's ridiculously high executive remuneration packages are justifiable. It is a crazy system that facilitates it and crazy that people find it acceptable. It's basically just bragging right above a certain point and to his credit TC is modest and not a braggart and clearly is neither impressed by nor motivated by personal wealth.
  • Reply 17 of 85
    paxmanpaxman Posts: 4,729member
    solipsismy wrote: »
    Despite his payout, Cook could get a lot more if he jumped to another company. It's almost like his goal as CEO isn't to be the richest man on Earth.
    :) I think that is exactly why he is such a great CEO for Apple.
  • Reply 18 of 85
    solipsismysolipsismy Posts: 5,099member
    paxman wrote: »
    No question Apple execs and TC in particular deserve recognition and ample reward. That doesn't mean that today's ridiculously high executive remuneration packages are justifiable. It is a crazy system that facilitates it and crazy that people find it acceptable. It's basically just bragging right above a certain point and to his credit TC is modest and not a braggart and clearly is neither impressed by nor motivated by personal wealth.

    It's an interesting dilemma for a company because what if there is someone that is considered high valuable to have on their team, or even not to have on their competitor's team, they should pay them as much as possible to stay on board or come aboard.

    For example, I think $10 MM per year is excessive for a salary, but if you think it will cost you hundreds of millions of dollars to not have this person onboard and they are being offered $15 MM from your competitor isn't it not in the best interest of the company, your shareholders, and customers to not pay what it takes to get them aboard? We can say, "those people shouldn't be so greedy" but this is the free market we're talking about.

    Personally, if offered $500,000 to work for MS in the late nineties and aughts and only $410,000 to work for Apple, I would have taken the $450,000. But what if we're talking about $60k to work at Apple and $300,000 to work at Google. I would have definitely worked at Google.
  • Reply 19 of 85
    solipsismysolipsismy Posts: 5,099member
    paxman wrote: »
    :) I think that is exactly why he is such a great CEO for Apple.

    It's certainly one of the many reasons I respect him and think he's the CEO Apple needs today.
  • Reply 20 of 85
    slurpyslurpy Posts: 5,382member
    Quote:

    Originally Posted by AtlApple View Post

     



    But but but if we are basing competence on the level of compensation then I guess Steve Ballmer blows Cook away seeing he has a net worth of 21.5 Billion. Larry Page 29.2 Billion. But but but.....


     

    Amazing how you manage to troll every thread you enter in such a shitty, mindless way. 

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