Apple's Tim Cook receives stock award worth $282M, sells $132M

Posted:
in General Discussion edited August 2020
Apple CEO Tim Cook this week reaped nearly $132 million after acquiring and immediately selling 560,000 restricted stock units meted out as time- and performance-based awards.




Revealed in a U.S. Securities and Exchange Commission filing on Tuesday, Cook on Monday saw a batch of 560,000 RSUs vest for satisfying performance goals set forth by the company's board of directors.

After Apple's statutory tax withholding, which came out to 294,840 stock units, Cook was left with 265,160 vested units that were immediately sold in multiple trades executed at prices ranging from $493.50 to $500.11 on Monday and Tuesday. Withheld units were traded on Monday at $503.43.

As usual, the trades were made pursuant to Cook's trading plan adopted on Feb. 28.

The fully vested award includes 280,000 time-based RSUs and 280,000 performance-based RSUs. Performance-based RSUs were calculated by monitoring Apple's performance relative to the S&P 500. To receive the full grant, Apple had to land in the top third of firms over a three-year period from Aug. 25, 2017 through Aug. 24, 2020, which it did. Adjusted for dividends, Apple's starting value was calculated at $157.56, with the stock ending the period at $464.63.

Total shareholder return for the three-year period was 194.89%, placing Apple in the 99th percentile and 7th among the 442 companies on the index.

Cook has 1,260,000 RSUs remaining in his current award, all of which are slated to vest on Aug. 24, 2021. To see the RSUs convert in full, the executive must continue employment at Apple and maintain the company's financial health.

Today's filing comes a day after a disclosure noted Cook's donation of 10,715 owned shares to an unknown charity. The gift was worth more than $5 million when the transaction was completed on Friday.
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Comments

  • Reply 1 of 24
    red oakred oak Posts: 907member
    Well earned! 

    This is a well researched and written article.  Good job AI
    anantksundaramBart Yequality72521twokatmewaderutter
  • Reply 2 of 24
    red oak said:
    Well earned! 

    This is a well researched and written article.  Good job AI
    Agreed. Probably some charity contributions, some diversification (eminently sensible), perhaps buying a major asset.

    He seems, overall, like a rather simple, frugal, non-flashy person whose life revolves around making Apple continuously better and leaving behind a better world (as he defines it).
    h4y3spatchythepiratemwhiteBart Ytwokatmewaderutter
  • Reply 3 of 24
    maestro64maestro64 Posts: 5,022member
    That is the tax bill for the RCU's that just vested. How many people do you know who have tax bill like that.
    patchythepirateBart Y
  • Reply 4 of 24
    Just needed to get some groceries and fill up the tank on the car, no biggie.
    cy_starkmanmwhiteBart YCarnagerazorpit
  • Reply 5 of 24
    chadbagchadbag Posts: 1,521member
    maestro64 said:
    That is the tax bill for the RCU's that just vested. How many people do you know who have tax bill like that.
    It is actually both.   According to the article Apple withheld a butt load which it sold for taxes and the rest he sold.   The tax ones seem to have sold for the $503 amount and his own sales for the other listed sales range.  
    Bart Ytwokatmew
  • Reply 6 of 24
    carnegiecarnegie Posts: 962member
    chadbag said:
    maestro64 said:
    That is the tax bill for the RCU's that just vested. How many people do you know who have tax bill like that.
    It is actually both.   According to the article Apple withheld a butt load which it sold for taxes and the rest he sold.   The tax ones seem to have sold for the $503 amount and his own sales for the other listed sales range.  
    Yes, more than 50% of Mr. Cook’s vesting shares get withheld for tax purposes.

    But to be clear, Apple doesn’t sell those shares. It just doesn’t issue them and then remits their value (based on the closing price of the stock on the day the shares vest) to tax authorities.
    muthuk_vanalingambsnjonBart Yaderutter
  • Reply 7 of 24
    ednlednl Posts: 61member
    Gross. They could have given $2000 to every single full-time employee instead.
    KITArain22lkruppspice-boy
  • Reply 8 of 24
    F_Kent_DF_Kent_D Posts: 85unconfirmed, member
    Apple feels he earned it so good for him. I’m a user of many Apple products and aren’t going anywhere anytime soon.
    patchythepiratetwokatmew
  • Reply 9 of 24
    SpamSandwichSpamSandwich Posts: 33,407member
    ednl said:
    Gross. They could have given $2000 to every single full-time employee instead.
    Why? Cook earned that money. Talented and productive people in unique corporate positions should be compensated. The Apple Board of Directors believe he earned it, so outside opinions are irrelevant.
    patchythepiratemwhiteBart Yuraharamike1equality72521razorpittwokatmew
  • Reply 10 of 24
    tyler82tyler82 Posts: 974member
    Franchise Tax Board of California likes this post
    cy_starkmanpatchythepiratemwhiteBart YCarnagechemengin1
  • Reply 11 of 24
    doggonedoggone Posts: 307member
    carnegie said:
    chadbag said:
    maestro64 said:
    That is the tax bill for the RCU's that just vested. How many people do you know who have tax bill like that.
    It is actually both.   According to the article Apple withheld a butt load which it sold for taxes and the rest he sold.   The tax ones seem to have sold for the $503 amount and his own sales for the other listed sales range.  
    Yes, more than 50% of Mr. Cook’s vesting shares get withheld for tax purposes.

    But to be clear, Apple doesn’t sell those shares. It just doesn’t issue them and then remits their value (based on the closing price of the stock on the day the shares vest) to tax authorities.
    This is where RSU and options pay off.  Cook gets a huge bonus for bringing Apple to this level. Plus the taxman gets a huge payout at the same time.
    To pay tax now means that Cook only has to pay capital gains above the strike value in the future for the remaining shares.  He's already a billionaire but that's just add some more.  He's going to get to keep another 600K shares in another year.  At current prices thats another $300MM in the bank for Tim.
    patchythepirateBart Y
  • Reply 12 of 24
    qwerty52qwerty52 Posts: 334member
    ednl said:
    Gross. They could have given $2000 to every single full-time employee instead.

    I think $2000 are for full-time Apple employee just a pocket money, because they are already good payed.
    As a Apple CEO, Tim Cook did very good job, and has fairly earned this reward.
  • Reply 13 of 24
    uraharaurahara Posts: 590member
    ednl said:
    Gross. They could have given $2000 to every single full-time employee instead.
    There is a mindset which poor people have. That to be rich is a sin or as you said “gross”. 

    Also one of the problems with the communism in the USSR was that things and money were taken from hard working people. Just so that those who didn’t earn it could get it. 

    You just sound like a poor communist who wants to steal from hard working people who earned more than you. 
    qwerty52mike1equality72521lkruppLoneStar88SpamSandwichrazorpitaderutterchemengin1
  • Reply 14 of 24
    mike1mike1 Posts: 2,813member
    ednl said:
    Gross. They could have given $2000 to every single full-time employee instead.

    And what would that accomplish? Sound like another silly socialist.
    equality72521LoneStar88SpamSandwichrazorpit
  • Reply 15 of 24
    urahara said: There is a mindset which poor people have. That to be rich is a sin or as you said “gross”. 
    The mindset of poor people is that paying taxes on $132 million isn't really that much of a problem to have. 
    twokatmew
  • Reply 16 of 24
    Marvellous. Enjoy, Tim. 
  • Reply 17 of 24
    ednl said:
    Gross. They could have given $2000 to every single full-time employee instead.
    Just how many of these "full-time employees" could step up and run Apple anywhere nearly as well as Mr. Cook?

    His is an incredibly difficult job with a commensurately high level of responsibility. A free society requires these leadership skills at so many levels. Only a slave state could pretend to demand "equal pay for everyone". Communist claptrap!!
    razorpit
  • Reply 18 of 24
    spice-boyspice-boy Posts: 1,445member
    red oak said:
    Well earned! 

    This is a well researched and written article.  Good job AI
    Agreed. Probably some charity contributions, some diversification (eminently sensible), perhaps buying a major asset.

    He seems, overall, like a rather simple, frugal, non-flashy person whose life revolves around making Apple continuously better and leaving behind a better world (as he defines it).
    Nobody deserves that much money especially as America will see millions of people be evicted this fall / winter. Tax laws only favor the richest which Tim Cook is one of. Don't  gloat oner his wealth, nobody is so gifted to have a personal wealth that far about the average person. Tim runs the biggest company in the world and soon the biggest monopoly. Apple's products are lame these past few years because the no longer need to push themselves. Apple is expanding into other fields which it will buy technologies and smaller companies to get a jumpstart of dominating those. Look at history if you doubt me. 
    ednl
  • Reply 19 of 24
    spice-boyspice-boy Posts: 1,445member
    ednl said:
    Gross. They could have given $2000 to every single full-time employee instead.
    Greed doesn't think of others, the top actually believe they deserve to have 100x more than every other hardworking employee. 
    ednltwokatmew
  • Reply 20 of 24
    SpamSandwichSpamSandwich Posts: 33,407member
    urahara said: There is a mindset which poor people have. That to be rich is a sin or as you said “gross”. 
    The mindset of poor people is that paying taxes on $132 million isn't really that much of a problem to have. 
    Even poor people have the opportunity to become rich in America and it happens all the time thanks to hard work, creativity and the right attitude. On the flip side, there are also the envious, those with an agenda who want to steal and get stuff for free by punishing the productive in our society.

    No one owes anyone anything.
    razorpitaderutter
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