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