Apple CEO Tim Cook sells $36M in Apple stock after receiving 5-year RSU bonus

Posted:
in General Discussion edited August 2016
After receiving a sizable bonus of vested restricted stock units (RSUs) for five years of success as Apple's CEO, Tim Cook on Wednesday cashed in nearly a third of his existing stock cache for a $35.8 million payday.




Disclosed in a Securities and Exchange Commission filing on Friday, Cook's award of 1.26 million RSUs -- 980,000 time-based RSUs and 280,000 performance-based RSUs -- vested on Aug. 24. Prior to this week, the Apple chief had accrued 2.24 million shares of vested stock during his tenure as CEO, part of a 2011 compensation package granting 4.7 million restricted shares. Wednesday marked the fifth anniversary of Cook taking the reins at Apple from late cofounder Steve Jobs.

Cook tends to stockpile awards, but this year sold off 990,117 vested shares worth more than $35.8 million in a series of trades at prices ranging from $106.69 to $107.92. Apple withheld a bit more than half of the 1.26 million shares to comply with minimum statutory tax withholding requirements.

Apple's contract terms stipulate Cook satisfy performance metrics related to total shareholder return (TSR) relative other companies listed in the S&P 500 index over a three-year period between Aug. 25, 2013, and Aug. 24, 2016. To vest in full, Apple had to outperform two-thirds of the S&P 500. If the company landed in the middle third of S&P 500 firms, Cook's 280,000-unit award would drop by 50 percent, and would fall to zero if Apple ended up in the bottom third.

With Cook at the helm, Apple ranked in 78th percentile with a TSR of 67.55 percent for the three-year stretch ending this week, good for 95th place among 430 companies included in the S&P 500 calculations during the period.

Following this week's sell-off, Cook still has 1,309,692 in his trust worth about $140 million at the end of trading on Friday. Future awards are pending, including a batch of 700,000 RSUs scheduled to vest on Aug. 24, 2021. Wednesday's 280,000-unit award was the first of six performance-based RSU packages set to vest in annual installments through 2021.
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Comments

  • Reply 1 of 39
    SpamSandwichSpamSandwich Posts: 30,719member
    He's doing pretty well. I still say he'll be entering politics as the next part of his career path.
    gatorguynostrathomas
  • Reply 2 of 39
    He's doing pretty well. I still say he'll be entering politics as the next part of his career path.
    Wow, that would make one hell of a storied career!!! =)
    cali
  • Reply 3 of 39
    lmaclmac Posts: 173member
    Must not be anything good in the pipeline, or there'd be reason to hold onto it.
    cully
  • Reply 4 of 39
    lmac said:
    Must not be anything good in the pipeline, or there'd be reason to hold onto it.
    It's more like a pre-planned sale. The timing was determined long ago.
    Deelronmwhite
  • Reply 5 of 39
    He's doing pretty well. I still say he'll be entering politics as the next part of his career path.
    Wow, that would make one hell of a storied career!!! =)
    And I think he will have one great career as a politician too!
    latifbp
  • Reply 6 of 39
    He's doing pretty well. I still say he'll be entering politics as the next part of his career path.
    Wow, that would make one hell of a storied career!!! =)
    And I think he will have one great career as a politician too!
    I believe he's had enough dealings with national politicians to know that they are largely not that smart and I get the impression Tim would like to take on bigger concerns.
    fastasleeplatifbpjony0
  • Reply 7 of 39
    wigbywigby Posts: 688member
    lmac said:
    Must not be anything good in the pipeline, or there'd be reason to hold onto it.
    He's still taking home way less $$$ than Angela Ahrents whom he hired. If he cashed in all of his stock, I wouldn't blame the market for getting spooked. But 1/3 is very reasonable. Apple's not doomed again.
    netmagecwingravlatifbp
  • Reply 8 of 39
    lkrupplkrupp Posts: 6,690member
    What does an individual actually do with $36 million? Google says his net worth is $785 million. Does Cook have a partner, significant other, husband? Is he a loner? He has two brothers. Does he give it away or bury it in the back yard? We really don’t know very much about him do we.
    edited August 2016 netmagelatifbp
  • Reply 9 of 39
    calicali Posts: 3,495member
    Doomed!!!! Everyone sell your Apple ASAP!!!!!!!123

    He's doing pretty well. I still say he'll be entering politics as the next part of his career path.
    Wow, that would make one hell of a storied career!!! =)
    And I think he will have one great career as a politician too!
    First gay president?

    topper24hours
  • Reply 10 of 39
    jfc1138jfc1138 Posts: 3,090member
    lkrupp said:
    What does an individual actually do with $36 million? Google says his net worth is $785 million. Does Cook have a partner, significant other, husband? Is he a loner? He has two brothers. Does he give it away or bury it in the back yard? We really don’t know very much about him do we.
    Buy half a decent apartment in NYC. Donate to various good causes. Cash money is good. 
  • Reply 11 of 39
    So if he sold 990k shares at ~$106/share, where did the $35.8 million figure come from? The total value I'm calculating is over $100M. No way he paid over 70% in taxes, as these should be considered Long Term Capital Gains, and only taxed at a flat rate of 20%...
  • Reply 12 of 39
    lkrupp said:
    What does an individual actually do with $36 million? Google says his net worth is $785 million. Does Cook have a partner, significant other, husband? Is he a loner? He has two brothers. Does he give it away or bury it in the back yard? We really don’t know very much about him do we.
    You diversify your holdings. You don't want to keep all of your money in AAPL stock, you pull it out and invest it into various accounts so that your money can make you more money. He might decide to invest in bonds or startups or just have a team of financial advisors decide for him.
    netmageDeelronlatifbpanton zuykov
  • Reply 13 of 39
    nolamacguynolamacguy Posts: 4,758member
    lmac said:
    Must not be anything good in the pipeline, or there'd be reason to hold onto it.
    oh can it and go back to MR, this isn't a troll cave
    fastasleepnetmageericthehalfbeeDeelrontopper24hourslatifbp
  • Reply 14 of 39
    nolamacguynolamacguy Posts: 4,758member
    but but but sog said he's a lousy CEO and should be fired?
    fastasleepfochermwhiteericthehalfbeetopper24hourssingularity
  • Reply 15 of 39
    fastasleepfastasleep Posts: 2,386member
    lkrupp said:
    What does an individual actually do with $36 million? Google says his net worth is $785 million. Does Cook have a partner, significant other, husband? Is he a loner? He has two brothers. Does he give it away or bury it in the back yard? We really don’t know very much about him do we.
    http://appleinsider.com/articles/15/03/27/apples-tim-cook-plans-to-give-away-all-of-his-money
    Deelron
  • Reply 16 of 39
    xzuxzu Posts: 139member
    I thought RSU from RSU Bonus stood for "Really Sucky Updates." Makes more sense with the amount of the bonus... GREAT JOB!

    Seriously though, I am sure almost his entire net worth is tied to one company, he needs to diversify... nothing to see here move along. Good for you Mr. Cook.
  • Reply 17 of 39
    focherfocher Posts: 638member
    cali said:
    Doomed!!!! Everyone sell your Apple ASAP!!!!!!!123

    And I think he will have one great career as a politician too!
    First gay president?

    Openly is more like it.
    nolamacguyfastasleepDeelron
  • Reply 18 of 39
    lkrupp said:
    We really don’t know very much about him do we.
    Why would we need to know much about him!?
    topper24hourslatifbpsingularity
  • Reply 19 of 39
    SoliSoli Posts: 8,542member
    How dare he profit from running the world's [most valuable] corporation¡
    edited August 2016 SpamSandwichtopper24hourslatifbpsingularity
  • Reply 20 of 39
    Soli said:
    How dare he profit from running the world's largest corporation¡
    Largest? I don't think so.

    Most valuable? Certainly. (And that only bolsters your point). 
    latifbp
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