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Apple locks in Tim Cook as CEO with restricted stock bonus worth $383 million

post #1 of 47
Thread Starter 
Apple's new chief executive has been awarded a million restricted shares of Apple that vest over the next decade, ensuring his continued employment through 2021.

At today's closing stock valuation, one million shares of Apple would be worth $383.6 million.

However, the restricted stock units Apple's board voted to awarded Cook won't begin to vest until August 2016, when half of the award will convert into shares or a cash equivalent, depending upon how the award is set up.

The second half of Cook's million restricted stock units vest in August 2021. Both vesting dates are contingent upon his "continued employment with Apple through each such date," according to Apple's 8K filing with the SEC.

A variety of analysts have already set Apple's stock targets as high as $500, and in ten years, Apple's stock price could easily make Cook's award worth considerably more than half a billion dollars.
post #2 of 47
Quote:
Originally Posted by AppleInsider View Post

Cook's aware worth considerably more than half a billion dollars.

It wouldn't be a DED article without a typo. Some things never change.
post #3 of 47
Tim Cook will only stay as long as he enjoys what he does. Let's hope he stays. He is amazing.

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post #4 of 47
Tim would stay at Apple even if he's only paid $1/yr.

He frickin loves Apple.

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post #5 of 47
I'm guessing more like $1B after 10 years.
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post #6 of 47
Anyway... back to Tim's stock bonus... oddly enough, Amelio was given 1 million shares to head Apple. In that case Tim should have received even more.
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post #7 of 47
Back on topic (mostly)


Wed Aug 24, 2011 Apple announces Jobs - Cook transition

Fri, Aug 26, 2011 close of market:

AAPL Market Value of Listed Securityt$ 354,717,522,900

XOM Market Value of Listed Securityt$ 353,175,680,000

I would call that a pretty well executed transition!


Well done Apple -- things like this don't just happen!
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post #8 of 47
Could an admin please remove the images from this thread? What is this, 4chan?

Locking the CEO like that seems a good idea. Is Tim Cook's salary also going to be $1?
post #9 of 47
Back on-topic, go Tim!
post #10 of 47
Quote:
Originally Posted by DrDoppio View Post

Could an admin please remove the images from this thread? What is this, 4chan?

Locking the CEO like that seems a good idea. Is Tim Cook's salary also going to be $1?

I expect Tim will need some "walking around" money -- he isn't independently wealthy.
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post #11 of 47
Not sure if the photo was real or not, but in any case it's now gone.
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post #12 of 47
You need to ban AppleLover2. this guy's a dick for posting that photo.

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post #13 of 47
Quote:
Originally Posted by FriedLobster View Post

You need to ban AppleLover2. this guy's a dick for posting that photo.

Please don't discuss in threads such as these whether you think other posters should be banned or not; it is off-topic. Either start a thread in the feedback forum or send a PM. On this particular occasion please don't send a PM to me because I have no intention of banning him (over this) and you won't change my mind. However, I'm not the only mod on AI...
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post #14 of 47
update - I've deleted all the posts regarding the image as I realised they were all off-topic.
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post #15 of 47
Quote:
Originally Posted by Mr. H View Post

Not sure if the photo was real or not, but in any case it's now gone.

Yes! Thanks, mods, for taking it down.
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post #16 of 47
Quote:
Originally Posted by AppleInsider View Post

Apple's new chief executive has been awarded a million restricted shares of Apple that vest over the next decade, ensuring his continued employment through 2021.

Nothing like buying a little stability after the departure of Steve Jobs...
post #17 of 47
Quote:
Originally Posted by AppleInsider View Post

Apple's board voted to awarded Cook

Here's another typo. He fixed the one already pointed out above, but missed this one. Even his short posts have multiple typos. Seriously, do these writers just post whatever they want with no supervision?
post #18 of 47
Quote:
Originally Posted by island hermit View Post

Anyway... back to Tim's stock bonus... oddly enough, Amelio was given 1 million shares to head Apple. In that case Tim should have received even more.

Didn't Amelio also get a huge golden parachute when he left Apple? Does Cook have a similar arrangement?
post #19 of 47
Quote:
Originally Posted by Maguro View Post

Here's another typo. He fixed the one already pointed out above, but missed this one. Even his short posts have multiple typos. Seriously, do these writers just post whatever they want with no supervision?

They are probably using an iPad or Lion/Safari with autoIncorrect turned on!
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post #20 of 47
Quote:
Originally Posted by Dick Applebaum View Post

I expect Tim will need some "walking around" money -- he isn't independently wealthy.

True... the $80 million or so in stock he's already cashed in just doesn't buy what it used to.
post #21 of 47
Quote:
Originally Posted by Haggar View Post

Didn't Amelio also get a huge golden parachute when he left Apple? Does Cook have a similar arrangement?

I would suspect not... Amelio was recruited/induced to take over a struggling company... a golden parachute, then, was based on risk/reward.

Cook is being promoted to run a company at the top if its game (much of which is due to his contributions). Today's award is an initial inducement/vote of confidence. There is absolutely no reason that the board could not offer additional rewards/inducements as warranted,

In the early days of Apple, Jobs was known for handing grey envelopes (containing stock options) to key employees,
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post #22 of 47
It'd be great if Apple could keep the tradition of $1 salary for the CEO. And no golden parachute. Apple does well and the CEO gets compensated well. Apple does poorly and CEO gets less.

- Jasen.
post #23 of 47
Quote:
Originally Posted by Haggar View Post

Didn't Amelio also get a huge golden parachute when he left Apple? Does Cook have a similar arrangement?

Actually, Amelio was given options to buy 1 million shares at $26.25 or $6.56 today adjusted for splits... but those options turned out worthless at that time. His salary was based on performance but was guaranteed at $2.5 million. His severance was $6.7 million +.
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post #24 of 47
Quote:
Originally Posted by Duddits View Post

True... the $80 million or so in stock he's already cashed in just doesn't buy what it used to.

The CEO job of a major corporation has certain perqs and certain reqs -- Tim needs the monetary where-with-all to deal with heads of corporations and countries from a position of strength and credibility.

Steve could afford, and take advantage of, a salary of $1 per year. Tim cannot -- this is a different Apple, now. Tim needs to have the status of a major player -- as well as be one.

As a shareholder, I would like to see Tim earn multiple $ millions per year.


FWIW, stock sales are often used to diversify, pay/offset taxes, maximize an option, etc.
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post #25 of 47
Quote:
Originally Posted by Dick Applebaum View Post

I expect Tim will need some "walking around" money -- he isn't independently wealthy.

$59 million last year from Apple and annual salary of $800k plus annual $900k bonus.
Add a few million more in stock sales (Nike) this year and I only wish I was not that independently wealthy...
post #26 of 47
Quote:
Originally Posted by Chris_CA View Post

$59 million last year from Apple and annual salary of $800k plus annual $900k bonus.
Add a few million more in stock sales (Nike) this year and I only wish I was not that independently wealthy...

Have vou ever been in a room with millionaires... I have.

It often becomes a pissing contest among the lower echelon -- he's only worth $1.4 momllion and I'm worth $1.5 miiilon...

When Cook enters a room... He needs to shut that down -- by physical presence (and net worth, doesn't hurt)

Why would you want to dick around proving your bona fides when you are about changing the world?
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post #27 of 47
Quote:
Originally Posted by Dick Applebaum View Post

Why would you want to dick around proving your bona fides when you are about changing the world?

Can I sell sugar water instead?


Looks like he has +500,000 AAPL shares already plus this million and whatever he has elsewhere.
RIchie Rich? Probably not but he's not hurting.
But I get your point.
post #28 of 47
Quote:
Originally Posted by Dick Applebaum View Post

The CEO job of a major corporation has certain perqs and certain reqs -- Tim needs the monetary where-with-all to deal with heads of corporations and countries from a position of strength and credibility.

Steve could afford, and take advantage of, a salary of $1 per year. Tim cannot -- this is a different Apple, now. Tim needs to have the status of a major player -- as well as be one.

As a shareholder, I would like to see Tim earn multiple $ millions per year.


FWIW, stock sales are often used to diversify, pay/offset taxes, maximize an option, etc.

What are you talking about?!

Tim Cook is extraordinarily wealthy!

Any yearly salary he earns will be dwarfed by the millions he already has in the bank and will make with his options.

I expect that he will earn a genuine salary - although the $1 thing would be nice to preserve.

However, any salary Tim earns won't increase his "position of strength and credibility" among other chief executives.

Tim is CEO of Apple. CEO of the largest corporation in the world on certain days. Whether he makes $1/year or $1million/year, his status is equally formidable (and his salary is equally negligible).

If you're worried he's not going to be able to afford proper clothes, you can rest easy. Besides, he could always wear jeans and black t-shirts while he saves up for a suit.
post #29 of 47
That is a lot of dough. And I am sure it comes with the corporate jet.

Is he getting a ONE CENT salary like Steve Jobs?
post #30 of 47
Quote:
Originally Posted by Dick Applebaum View Post

Have vou ever been in a room with millionaires... I have.

It often becomes a pissing contest among the lower echelon -- he's only worth $1.4 momllion and I'm worth $1.5 miiilon...

When Cook enters a room... He needs to shut that down -- by physical presence (and net worth, doesn't hurt)

Why would you want to dick around proving your bona fides when you are about changing the world?

In a room full of millionaires, I always win the pissing contest by earning 0 USD per year (SJ is a big earner compared to me). Just give them a sorry look and use this killing phrase 'Oh, you still need to earn! I don't earn, I own'.
post #31 of 47
Quote:
Originally Posted by emcs View Post

In a room full of millionaires, I always win the pissing contest by earning 0 USD per year (SJ is a big earner compared to me). Just give them a sorry look and use this killing phrase 'Oh, you still need to earn! I don't earn, I own'.

LOL. Exactly. At some point you have to graduate from being a "wage slave" and do what you do for the love of it. The scenario Dick describes sounds like a bunch of frat-boy wanna-bes stroking each others' egos. But I also hear/read the type of people who become that wealthy are highly driven, borderline (or over the border) sociopaths - so I wouldn't be surprised that they do things I don't understand.

Which has more bragging rights? "I bought a new villa in Greece" or "I introduced a new product that sold 1 million units in the first week"?

- Jasen.
post #32 of 47
Quote:
Originally Posted by solipsism View Post

I'm guessing more like $1B after 10 years.

Not that he needs an incentive I suspect but that is a nice one to have
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post #33 of 47
Quote:
Originally Posted by Maguro View Post

Here's another typo. He fixed the one already pointed out above, but missed this one. Even his short posts have multiple typos. Seriously, do these writers just post whatever they want with no supervision?

Lion needs an option to return to use Snow Leopard style spelling correction or Lion's as the user prefers. Anyone typing quickly simply accepts the alternative guesses Lion throws in by default and the psychology of perception kicks in, you see what you think you see often times not what is actually there when proofing in a hurry.

Apple rarely make mistakes in the UI but Lion's auto correct is definitely not good as is IMHO and urgently needs some user options.

I'm not saying remove it, I'm suggesting a) give the user an option between SL and Lion style on a per app basis and b) If using Lion's, user checks in prefs if the suggestion is accepted or rejected if you simply keep typing.
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Been using Apple since Apple ][ - Long on AAPL so biased
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post #34 of 47
Quote:
Originally Posted by AppleInsider View Post

At today's closing stock valuation, one million shares of Apple would be worth $383.6 million.

Speaking of this AAPL closed ahead of XOM once again. I notice that the usual tech sites and posters seem to be ignoring their predictions of doom for AAPL once Jobs stepped aside. It went the other way in fact. Investors know that Tim Cook has been the power behind the throne for a couple of years now and they are confident in his leadership. Jobs sure is.
post #35 of 47
Quote:
Originally Posted by OC4Theo View Post

That is a lot of dough. And I am sure it comes with the corporate jet.

Is he getting a ONE CENT salary like Steve Jobs?

Thanks for not reading the article or the thread.

Or getting any of your facts correct.
post #36 of 47
Is Steve keeping the N2N jet? Is he eligible for another transplant?
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post #37 of 47
Quote:
Originally Posted by solipsism View Post

Is Steve keeping the N2N jet? Is he eligible for another transplant?

I suspect for expense and tax reasons that the Jet is owned by Apple -- and will be used to transport Apple execs (including Steve) as the need warrants.
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post #38 of 47
Quote:
Originally Posted by Chris_CA View Post

$59 million last year from Apple and annual salary of $800k plus annual $900k bonus.
Add a few million more in stock sales (Nike) this year and I only wish I was not that independently wealthy...

Urban Dictionary:


I.W. means being independently wealthy. i.e. having enough money to support one's self without ever having to work.

JFK, Bobbie and Ted Kennedy are good examples of IW -- AIR, they each received $10 Million (likely, close to $100 Million in 2011 dollars) on their 20th BDays.
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post #39 of 47
Quote:
Originally Posted by Dick Applebaum View Post

Have vou ever been in a room with millionaires... I have.

It often becomes a pissing contest among the lower echelon -- he's only worth $1.4 momllion and I'm worth $1.5 miiilon...

When Cook enters a room... He needs to shut that down -- by physical presence (and net worth, doesn't hurt)

Why would you want to dick around proving your bona fides when you are about changing the world?

There's a big difference between being a millionaire (in terms of assets) and earning a $ million a year. Big difference. If you're a millionaire at 50, big deal. If you retire and you expect to live until 80, that leaves you with a big $33,000 a year. If you do it at 60 and expect to live another 20 years, that's only $50K per year. And if that's money invested in a pre-tax 401K or the like, you'll have to pay taxes as you withdraw the money.

If however, you EARN $1 million or more a year, that's real money. In 2009, almost 237,000 U.S. taxpayers earned more than $1 million. 8274 earned more than $10 million. 1470 of those earning over $1 million paid no Federal taxes, although that's usually because they donated a lot of money to charity. In 2007, the top 1% of earners earned 23% of total U.S. earnings. Back in the 1970s, ,the top 1% earned only 8 to 9% of total U.S. earnings.

In 2009, 11% of U.S. households had a net worth of over $500K
6.87% had a net worth over $1 million
0.86% (980,000) had a net worth over $5 million.

Besides, I like being in a room with millionaires. Being in that room raises the average net worth of each person in the room. That makes me richer, right?
post #40 of 47
Quote:
Originally Posted by zoetmb View Post

There's a big difference between being a millionaire (in terms of assets) and earning a $ million a year. Big difference. If you're a millionaire at 50, big deal. If you retire and you expect to live until 80, that leaves you with a big $33,000 a year. If you do it at 60 and expect to live another 20 years, that's only $50K per year. And if that's money invested in a pre-tax 401K or the like, you'll have to pay taxes as you withdraw the money.

If however, you EARN $1 million or more a year, that's real money. In 2009, almost 237,000 U.S. taxpayers earned more than $1 million. 8274 earned more than $10 million. 1470 of those earning over $1 million paid no Federal taxes, although that's usually because they donated a lot of money to charity. In 2007, the top 1% of earners earned 23% of total U.S. earnings. Back in the 1970s, ,the top 1% earned only 8 to 9% of total U.S. earnings.

In 2009, 11% of U.S. households had a net worth of over $500K
6.87% had a net worth over $1 million
0.86% (980,000) had a net worth over $5 million.

Besides, I like being in a room with millionaires. Being in that room raises the average net worth of each person in the room. That makes me richer, right?


Ha! I guess, with a small [enough] room and a big [enough] pissing contest -- a rising tide lifts all boats
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