Tim Cook acquires $123M worth of vested Apple stock, sells $58M

Posted:
in AAPL Investors edited August 2018
Apple CEO last week was granted 560,000 vested restricted stock, split between time- and performance-based awards, and in a subsequent selloff of the bonus gained nearly $58 million.

Tim Cook


According to a filing with the U.S. Securities and Exchange Commission, Cook's batch of 560,000 RSUs was granted last Friday after the Apple chief satisfied performance goals set forth by the company's board of directors. The granted stock was worth some $123 million at the end of trading on Tuesday.

Apple on Friday withheld 294,840 stock units, or 52.65 percent of the award, worth $63,732,614 to comply with statutory tax withholdings on vested RSUs. That left 265,160 units, which Cook sold in multiple trades ranging from $216.96 to $218.54 on Monday.

The stock sales on Monday were made pursuant to Cook's trading plan adopted on May 4.

The fully vested award includes 280,000 time-based RSUs and 280,000 performance-based RSUs. As Apple's recent stock performance landed the company in the top third of firms listed in the S&P 500 over a three-year period from Aug. 25, 2015 through Aug. 24, 2018, Cook reaped the full grant. Adjusted for dividends, Apple's starting value was calculated at $116.28, while it ended the evaluation period at $220.87.

According to the filing, Apple's TSR performance for the three-year period was 89.94 percent, ranking the company 50th out of 423 companies. The result put Apple in the 88th percentile. If Apple ended in the middle or bottom third, Cook's award would have been reduced to 50 percent or zero, respectively.

Cook has 2,380,000 RSUs remaining in his current award, with 1,680,000 units slated to vest in three equal annual installments starting on Aug. 24, 2019, contingent on continued employment and AAPL stock performance. A 700,000-unit chunk is scheduled to vest on Aug. 24, 2021.
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Comments

  • Reply 1 of 31
    Warren Buffet buys, Tim sells. Interesting.
  • Reply 2 of 31
    hentaiboy said:
    Warren Buffet buys, Tim sells. Interesting.
    You can't buy groceries or pay rent with Apple shares. Once and a while, you need to liquify your assets to exchange for goods and/or services.
    lolliverbshankracerhomie3GeorgeBMacdavgregjony0
  • Reply 3 of 31
    mpantonempantone Posts: 1,423member
    rcomeau said:
    hentaiboy said:
    Warren Buffet buys, Tim sells. Interesting.
    You can't buy groceries or pay rent with Apple shares. Once and a while, you need to liquify your assets to exchange for goods and/or services.
    The more likely motivation for him selling his RSUs is portfolio diversification.

    It's not like he was penniless before these transactions.

    Cook has not exhibited any real interest in crass materialism like super-yachts or enormous mansions. He doesn't collect vintage cars nor attend glitzy galas. He shows very little interest in the arts, fashion, cuisine, etc. The Apple Board of Directors demands that he travel via private jet (on the company's dime), so it's not like he's going to buy a Learjet.

    He doesn't buy professional sports teams like Steve Ballmer nor fund America's Cup yacht syndicates like Larry Ellison.

    He's a bit of a health nut but how many t-shirts, shorts and pairs of socks does a guy need? He's into physical fitness but seems to have little interest in attending major events (sports, concerts, etc.) whether they be local (SF Bay Area) or abroad.

    For a CEO of a Dow 30 company, Tim's expenses are comparatively paltry.

    He does seem to have some interest in philanthropy so perhaps he has some idea about how some of these funds might be used.
    edited August 2018 radarthekatmac_dogracerhomie3CarnageSolianantksundaramfastasleepGeorgeBMacspice-boydavgreg
  • Reply 4 of 31
    rcomeau said:
    hentaiboy said:
    Warren Buffet buys, Tim sells. Interesting.
    You can't buy groceries or pay rent with Apple shares. Once and a while, you need to liquify your assets to exchange for goods and/or services.
    "Liquidate", not "liquify"... unless he was somehow melting paper stock certificates.
    [Deleted User]
  • Reply 5 of 31

    mpantone said:
    rcomeau said:
    hentaiboy said:
    Warren Buffet buys, Tim sells. Interesting.
    You can't buy groceries or pay rent with Apple shares. Once and a while, you need to liquify your assets to exchange for goods and/or services.
    The more likely motivation for him selling his RSUs is portfolio diversification.

    It's not like he was penniless before these transactions.

    Cook has not exhibited any real interest in crass materialism like super-yachts or enormous mansions. He doesn't collect vintage cars nor attend glitzy galas. He shows very little interest in the arts, fashion, cuisine, etc. The Apple Board of Directors demands that he travel via private jet (on the company's dime), so it's not like he's going to buy a Learjet.

    He doesn't buy professional sports teams like Steve Ballmer nor fund America's Cup yacht teams like Larry.

    He's a bit of a health nut but how many t-shirts, shorts and pairs of socks does a guy need? He's into physical fitness but seems to have little interest in attending major events (sports, concerts, etc.) whether they be local (SF Bay Area) or abroad.

    For a CEO of a Dow 30 company, Tim's expenses are comparatively paltry.
    How do you know? Tim's private life outside of Apple is, of course, no one's business but it's also completely opaque as far as I know.
    [Deleted User]
  • Reply 6 of 31
    mpantonempantone Posts: 1,423member

    mpantone said:
    rcomeau said:
    hentaiboy said:
    Warren Buffet buys, Tim sells. Interesting.
    You can't buy groceries or pay rent with Apple shares. Once and a while, you need to liquify your assets to exchange for goods and/or services.
    The more likely motivation for him selling his RSUs is portfolio diversification.

    It's not like he was penniless before these transactions.

    Cook has not exhibited any real interest in crass materialism like super-yachts or enormous mansions. He doesn't collect vintage cars nor attend glitzy galas. He shows very little interest in the arts, fashion, cuisine, etc. The Apple Board of Directors demands that he travel via private jet (on the company's dime), so it's not like he's going to buy a Learjet.

    He doesn't buy professional sports teams like Steve Ballmer nor fund America's Cup yacht teams like Larry.

    He's a bit of a health nut but how many t-shirts, shorts and pairs of socks does a guy need? He's into physical fitness but seems to have little interest in attending major events (sports, concerts, etc.) whether they be local (SF Bay Area) or abroad.

    For a CEO of a Dow 30 company, Tim's expenses are comparatively paltry.
    How do you know? Tim's private life outside of Apple is, of course, no one's business but it's also completely opaque as far as I know.
    With social media, smartphones, mainstream media, etc. it's pretty obvious when someone is burning cash.

    It's not like he lives in the middle of nowhere.

    Even if he hid his big purchases behind a trust, he'd quickly be spotted disembarking off a super-yacht or driving some 1930s Bugatti.

    Plus, that sort of materialism takes effort. Tim barely takes any vacation. He's always working. It's not like he's taking his 4-6 weeks of vacation off and partying with supermodels on such super-yacht at Cannes. He's not flying to the Netherlands to talk to some luxury shipbuilder.

    He certainly cannot walk out of War Memorial Opera House, Oracle Arena or Levi's Stadium without someone recognizing who he is. He can't attend the Met Ball incognito. What does he do if he's attending Puccini's Tosca during intermission? Does he hide out in his box? Does he wear a wig and a fake beard?

    What do you think would happen if he attended an Auburn football game? 

    If he donates money to a political candidate, his contribution is publicly disclosed. At least for Santa Clara County I believe there's a website that lists the contribution amount, name and street address of the donor. From the street address, you can plug that into the County Assessor's office's website and find out how much the owner is paying in property taxes on the parcel. With Proposition 13, it is pretty easy to guess what the purchase price was.

    If he tries to dine at a 3 Michelin star restaurant, someone's probably going to post a comment on FaceBook, Instagram, Twitter, whatever: "Tim Cook is dining at the next table."

    Me? I'm a nobody. My private life is pretty darned private because NO ONE CARES WHO I AM. Yeah, if I ended up on a super-yacht in Cannes partying with supermodels, I wouldn't be recognized. If I eat at a 3 Michelin star restaurant, nobody will tweet that I'm sitting there.

    Tim is a Dow 30 CEO. People watch him, people recognize him.

    People of his stature don't have magic shields of invisibility, no matter how rich they are.
    edited August 2018 bshankmac_dogdocno42bestkeptsecretfastasleepgatorguyStrangeDaysdavgregjony0
  • Reply 7 of 31
    nunzynunzy Posts: 662member
    That does NOT mean Apple is in trouble.

    He probably needed the money for a vacation house or a painting or something.

    He's a one percenter, after all. Maybe he bought an antique Ferrari?
  • Reply 8 of 31
    troehltroehl Posts: 31member
    ...or he needed to sell those shares for the massive tax bill he received with those shares....
    GeorgeBMacmarklark
  • Reply 9 of 31
    SpamSandwichSpamSandwich Posts: 31,334member
    troehl said:
    ...or he needed to sell those shares for the massive tax bill he received with those shares....
    And then he had to sell more stock to pay the tax on the tax...
    marklark
  • Reply 10 of 31
    racerhomie3racerhomie3 Posts: 1,152member
    He deserves much more than that. He propelled Apple to 1 Trillion . He should have actually become a Billionaire by now. 
    Solijony0
  • Reply 11 of 31
    racerhomie3racerhomie3 Posts: 1,152member

    mpantone said:
    rcomeau said:
    hentaiboy said:
    Warren Buffet buys, Tim sells. Interesting.
    You can't buy groceries or pay rent with Apple shares. Once and a while, you need to liquify your assets to exchange for goods and/or services.
    The more likely motivation for him selling his RSUs is portfolio diversification.

    It's not like he was penniless before these transactions.

    Cook has not exhibited any real interest in crass materialism like super-yachts or enormous mansions. He doesn't collect vintage cars nor attend glitzy galas. He shows very little interest in the arts, fashion, cuisine, etc. The Apple Board of Directors demands that he travel via private jet (on the company's dime), so it's not like he's going to buy a Learjet.

    He doesn't buy professional sports teams like Steve Ballmer nor fund America's Cup yacht teams like Larry.

    He's a bit of a health nut but how many t-shirts, shorts and pairs of socks does a guy need? He's into physical fitness but seems to have little interest in attending major events (sports, concerts, etc.) whether they be local (SF Bay Area) or abroad.

    For a CEO of a Dow 30 company, Tim's expenses are comparatively paltry.
    How do you know? Tim's private life outside of Apple is, of course, no one's business but it's also completely opaque as far as I know.
    You do realize TMZ exists, right?
  • Reply 12 of 31
    JanNLJanNL Posts: 270member
    rcomeau said:
    hentaiboy said:
    Warren Buffet buys, Tim sells. Interesting.
    You can't buy groceries or pay rent with Apple shares. Once and a while, you need to liquify your assets to exchange for goods and/or services.
    "Liquidate", not "liquify"... unless he was somehow melting paper stock certificates.
    Don't try to be too smart... Liquify is nice (and maybe right ;) ) to use in this sense, as in "converting into cash".
  • Reply 13 of 31
    rcomeau said:
    hentaiboy said:
    Warren Buffet buys, Tim sells. Interesting.
    You can't buy groceries or pay rent with Apple shares. Once and a while, you need to liquify your assets to exchange for goods and/or services.
    "Liquidate", not "liquify"... unless he was somehow melting paper stock certificates.
    While you may be right in the dictionary sense, the term ‘liquefy’ is widely used in this context colloquially. For example, you hear it on CNBC all the time.
  • Reply 14 of 31
    Superficially, you would want Tim Cook to hold on to his shares, to signal trust in the future of the company. But as we saw in 2016, when AAPL dropped to $90, the stock price can be manipulated and that is a huge distraction when most of your net worth is in the stock. Even for Tim Cook. So diversifying his money will help to avoid these distractions and keep his eye on the long term strategy. Which is good for Apple.
    bshank
  • Reply 15 of 31
    19831983 Posts: 1,185member
    I didn’t understand any of that!
  • Reply 16 of 31
    Overpaid CEOs.   Where is the liberal outrage?  It's selective I suppose.  Oh well.  Tim should be able to make billions if he so chooses.  That's 'merica.
    SpamSandwich[Deleted User]
  • Reply 17 of 31
    GeorgeBMacGeorgeBMac Posts: 4,961member
    hentaiboy said:
    Warren Buffet buys, Tim sells. Interesting.
    Nice troll!  But bullshit!

    The most dangerous investment is one in a single entity:  a single bond, stock or commodity.  Many people have been burned when company retirement plans were provided via company stock.   Smart people, of which Tim is definitely one, diversify out into multiple areas -- including real estate, etc...

    Tim's sale of of Apple stock is not based on a lack of loyalty or confidence in Apple.   It's just the smart thing to do.   And, Tim is smart.
  • Reply 18 of 31
    GeorgeBMacGeorgeBMac Posts: 4,961member
    He deserves much more than that. He propelled Apple to 1 Trillion . He should have actually become a Billionaire by now. 
    ...  and there's the Catch-22:   Tim is smart enough to know that it wasn't (just) himself who made Apple succeed.  

    Humility is part of what makes Tim great:  He knows he isn't.    
    And, actually, the same is true of Steve:  He had near infinite confidence and pride in his products.   But he always knew that he, himself, was fallible.
  • Reply 19 of 31

    mpantone said:
    rcomeau said:
    hentaiboy said:
    Warren Buffet buys, Tim sells. Interesting.
    You can't buy groceries or pay rent with Apple shares. Once and a while, you need to liquify your assets to exchange for goods and/or services.
    The more likely motivation for him selling his RSUs is portfolio diversification.

    It's not like he was penniless before these transactions.

    Cook has not exhibited any real interest in crass materialism like super-yachts or enormous mansions. He doesn't collect vintage cars nor attend glitzy galas. He shows very little interest in the arts, fashion, cuisine, etc. The Apple Board of Directors demands that he travel via private jet (on the company's dime), so it's not like he's going to buy a Learjet.

    He doesn't buy professional sports teams like Steve Ballmer nor fund America's Cup yacht teams like Larry.

    He's a bit of a health nut but how many t-shirts, shorts and pairs of socks does a guy need? He's into physical fitness but seems to have little interest in attending major events (sports, concerts, etc.) whether they be local (SF Bay Area) or abroad.

    For a CEO of a Dow 30 company, Tim's expenses are comparatively paltry.
    How do you know? Tim's private life outside of Apple is, of course, no one's business but it's also completely opaque as far as I know.
    If you were the CEO of Apple everybody would be up in your business, purchases of lavish homes are alway announced by the real-estate industry to keep a market hot. If you were famous or let's say at least not anonymous people would be interested in what you had to say. 
  • Reply 20 of 31
    GeorgeBMacGeorgeBMac Posts: 4,961member
    rwx9901 said:
    Overpaid CEOs.   Where is the liberal outrage?  It's selective I suppose.  Oh well.  Tim should be able to make billions if he so chooses.  That's 'merica.
    ROFL...  Well, now we know where the outrage from the right wing crazies is...   Or, is it terror and desperation as they see their glass house developing cracks?
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