Tim Cook sells off another $29M in Apple stock
One week after receiving a windfall of restricted stock units -- and cashing in a chunk for a $35.8 million payday -- Apple CEO Tim Cook on Monday sold another batch of his sizable stock cache worth nearly $29 million.
Cook gained more than $28.7 million from 269,883 owned Apple shares, sold in a series of trades at prices ranging from weighted averages of $105.95 to $107.37, according to a Securities and Exchange Commission filing on Wednesday.
The selloff comes less than a week after Cook marked five years of success as Apple's chief executive officer, a feat that earned him 1.26 million RSUs -- 980,000 time-based RSUs and 280,000 performance-based RSUs -- per a compensation package dating back to 2011. When Cook took over for late cofounder Steve Jobs, the board granted him 4.7 million restricted shares set to vest based on tenure and performance.
While other top Apple executives routinely cash in their vested shares, Cook has until now stockpiled his awards, presumably living off a base salary that in 2015 was bumped to $2 million.
After this week's trades, Cook's trust holds 1,039,809 Apple shares worth about $110 million at the end of trading on Wednesday. Another batch of 700,000 RSUs is scheduled to vest on Aug. 24, 2021, while five 280,000-unit performance-based RSU packages are set to vest in annual installments through 2021.
Cook gained more than $28.7 million from 269,883 owned Apple shares, sold in a series of trades at prices ranging from weighted averages of $105.95 to $107.37, according to a Securities and Exchange Commission filing on Wednesday.
The selloff comes less than a week after Cook marked five years of success as Apple's chief executive officer, a feat that earned him 1.26 million RSUs -- 980,000 time-based RSUs and 280,000 performance-based RSUs -- per a compensation package dating back to 2011. When Cook took over for late cofounder Steve Jobs, the board granted him 4.7 million restricted shares set to vest based on tenure and performance.
While other top Apple executives routinely cash in their vested shares, Cook has until now stockpiled his awards, presumably living off a base salary that in 2015 was bumped to $2 million.
After this week's trades, Cook's trust holds 1,039,809 Apple shares worth about $110 million at the end of trading on Wednesday. Another batch of 700,000 RSUs is scheduled to vest on Aug. 24, 2021, while five 280,000-unit performance-based RSU packages are set to vest in annual installments through 2021.
Comments
Instead of the usual corporate bullshit about "pre-scheduled selling of stock" and diversification
Why sell when the stock is at PE of 12? How does one, as CEO, defend that? Do you need the cash?
Is he selling because he wants to make a big charitable contribution somewhere?
Or is he selling because he thinks he can get a better return by investing elsewhere (or simply wants to be more diversified?)
But we'll never know the answer unless he makes an obvious large investment that becomes public knowledge.
The fact that he's selling implies to me that he doesn't think the Apple Car (or anything else) is going to drive fast growth of the stock price in the short to medium term. In fact, it could imply that he knows that there's nothing revolutionary in the pipeline and that there isn't going to be any growth.
They probably edited it after your comment (?).
For what it's worth, regarding breakthrough products. Really, nothing Apple did was breakthrough. What they did and will do is realize optimized versions of existing ideas/products.
The Mac? Fabulous execution of Doug Engelbart's vision, which predated what Steve saw at PARC
The iPhone/iPad? Fabulous executions of Alan Kay's Dynabook concept
iPod/iTunes? Maybe the most original execution of an Apple product, but still derivative.
Apple is doing great and when the next, major stuff comes, it'll be the best, most secure and reliable stuff on the market. I love the low PE, as there is tremendous headroom for share price. Oops, gotta go, my Galaxy 7 just caught fire. Shit the cat is smoldering......
Damn I miss Robert Morgan.
http://www.pelagius.com/AppleRecon/
I'd say this is no more a windfall then the monthly paychecks the rest of us take home. It's compensation for work performed, following previously agreed terms.
It really isn't that big of a deal though. It is insane to have 100% of your net worth in your employer's stock, even/especially if you are the CEO. It is more money than he will likely ever spend, so do something with it and create a legacy...
I don't think Tim's a car guy...
http://www.businessinsider.in/The-sweet-rides-of-techs-millionaires-and-billionaires/Tim-Cooks-first-car-was-a-Porsche-Boxster-but-these-days-hes-been-seen-driving-a-BMW-5-Series-/slideshow/49952190.cms