Apple CEO Tim Cook sells another $3.6M in company stock

Posted:
in AAPL Investors edited January 2017
Just days after cashing in a chunk of Apple shares worth $3.6 million, CEO Tim Cook sold another batch worth an almost identical amount in a series of trades this week, according to regulatory filings.




A U.S. Securities and Exchange Commission filing made public on Tuesday reveals Cook sold 30,000 AAPL shares in three equal transactions dated Jan. 20, 23 and 24. Stock prices were set at $120.41 for a batch of 10,000 shares, while the remainder was disposed of at $120. The trades were accomplished as part of a selloff plan disclosed in August 2015.

A relatively small payday for the ranking Apple executive, Cook's recent sales come on the heels of a similar selloff that netted him another $3.6 million last week.

The recent transactions were leveraged from Cook's sizable hoard of AAPL common stock and options. Last August marked Cook's fifth year on the job helming Apple, a period that saw the company grow to become one of the most valuable in the world. That same month, Cook saw 1.26 million restricted stock units -- 980,000 time-based RSUs and 280,000 performance-based RSUs -- vest as per a compensation package dating back to 2011.

Following today's reported trades, Cook is left with 979,809 shares of Apple worth about $117.6 million.

Earlier this month, Cook was docked $1.5 million in bonus pay as a result of Apple's comparatively poor showing in 2016. With slow iPhone sales, Apple managed net sales of $215.6 billion and operating income of $60 billion, short of target goals set by the company's compensation committee. As a result, top brass like Cook missed out on performance-based cash incentives.

Despite last year's stumble, the Apple chief is due to receive another batch of 700,000 vested RSUs on Aug. 24, 2021, while five 280,000-unit performance-based RSU packages are set to vest in annual installments through 2021.
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Comments

  • Reply 1 of 47
    Tax planning, I am guessing. 
    SpamSandwichhmmpscooter63cornchip
  • Reply 2 of 47
    Oh oh, jony's told him a retirement date & he's getting out before it's announced & the stock tanks
  • Reply 3 of 47
    calicali Posts: 3,495member
    dix99 said:
    Oh oh, jony's told him a retirement date & he's getting out before it's announced & the stock tanks
    Apple is doomed?
    pscooter63cornchipStrangeDays
  • Reply 4 of 47
    bitmodbitmod Posts: 267member
    Rumor has it the Macbook Pro is in the red - a first for a Mac since the cube.
  • Reply 5 of 47
    bitmod said:
    Rumor has it the Macbook Pro is in the red - a first for a Mac since the cube.
    Nah they're selling pretty good. They just can't fix them right now, so don't break yours when you get one. 
    cali
  • Reply 6 of 47
    Tim must have needed a new couch or something ...
    edited January 2017
  • Reply 7 of 47
    Timing is kind of interesting.. Why sell just a few days before earnings...? What are the rules of the game.... I dont know about you... but to me its not very comfortable that he is selling now... Rather than after earni gs report... Any thoughts? Thanx
    caliMikeymike
  • Reply 8 of 47
    cali said:
    dix99 said:
    Oh oh, jony's told him a retirement date & he's getting out before it's announced & the stock tanks
    Apple is doomed?
    If they are then it's not Jony's fault. There's no one there to push him like Steve did.  They're is no conflict to inspire each other. They got rid of Forestall and all the public thinks is that he f'd up maps. He wasn't a lightweight since he was with Jobs since the NEXT days. Sure he was hated by Ives, Federigi, Faddell, that idiot Schiller, and probably Cook, but Jobs liked him because out of conflict came these beautiful products. They were all trying to out do each other and pushed each other to make the best products they could.  Now it's just a big circle jerk. They want to be stylish over functionality. 

    You can tell that the talent that you never knew that made everything work together so seamlessly has moved on.  There is nobody to throw a tantrum when something doesn't work. 
    It took an outside entity to show Apple there is something wrong with their brand new computers, and it was the OS. I doubt anybody lost their job over it too. 

    This is the nicer Cook era...
    edited January 2017 calielijahg
  • Reply 9 of 47
    Tax planning, I am guessing. 
    Exactly!

    palomine
  • Reply 10 of 47
    Tax planning, I am guessing. 
    That's what I'm thinking also.
    palomine
  • Reply 11 of 47
    calicali Posts: 3,495member
    cali said:
    dix99 said:
    Oh oh, jony's told him a retirement date & he's getting out before it's announced & the stock tanks
    Apple is doomed?
    If they are then it's not Jony'a fault. There's no one there to push him like Steve did.  They're is no conflict to inspire each other. They got rid of Forestall and all the public thinks is that he f'd up maps. He wasn't a lightweight since he was with Jobs since the NEXT days. Sure he was hated by Ives, Federigi, Faddell, that idiot Schiller, and probably Cook, but Jobs liked him because out of conflict came these beautiful products. They were all trying to out do each other and pushed each other to make the best products they could.  Now it's just a big circle jerk. They want to be stylish over functionality. 

    You can tell that the talent that you never knew that made everything work together so seamlessly has moved on.  There is nobody to throw a tantrum when something doesn't work. 
    It took an outside entity to show Apple there is something wrong with their brand new computers, and it was the OS. I doubt anybody lost their job over it too. 

    This is the nicer Cook era...
    Nice reply.

    I found it harsh to fire a high-level for Maps. I figured it was Cook showing the company he wasn't gonna mess around.

    Even though he was an "asshole" I found Scott to be very loyal. After getting fired he didn't leave to another tech company and did music theatre instead. Any tech company would kill to have him, I bet he was offered big money too.
    hammeroftruthpalomine
  • Reply 12 of 47
    Timing is kind of interesting.. Why sell just a few days before earnings...? What are the rules of the game.... I dont know about you... but to me its not very comfortable that he is selling now... Rather than after earni gs report... Any thoughts? Thanx
    There are quite a few rules regarding the sale of stock by an executive of a publicly traded company.

    http://www.sec.gov/investor/pubs/rule144.htm

    Among them is any stock issued has to be held for a year, the corporation has to sign off on it, it has to be sold by a broker etc..

    Due to the "process" these sales are scheduled a year or more in advance. They are essentially put into a trust with the broker and they are sold on the scheduled dates no matter what. Whatever the price is that day is what they are sold at, I'm not sure you could stop the sale. Once it's scheduled it's going to happen on that day.

    i read in another article. The recent sales were originally scheduled from a 2015 filing. So this was planned 18+ months ago. 
    wonkothesaneSpamSandwichpalominepatchythepirate
  • Reply 13 of 47
    SoliSoli Posts: 9,278member
    Timing is kind of interesting.. Why sell just a few days before earnings...? What are the rules of the game.... I dont know about you... but to me its not very comfortable that he is selling now... Rather than after earni gs report... Any thoughts? Thanx
    1) I believe there is a time frame of disclosure for executives so this is isn't surprising.

    2) Over the years we've seen Apple execs sell stock right before earnings when they've made record sales so this action nor the call for Apple's impending doom are surprising.
    palomineStrangeDays
  • Reply 14 of 47
    Tax planning, I am guessing. 
    Exactly!

    Yeah right. Tax "planning" one week before releasing an earnings report.
    That's planning alright.
  • Reply 15 of 47

    Timing is kind of interesting.. Why sell just a few days before earnings...? What are the rules of the game.... I dont know about you... but to me its not very comfortable that he is selling now... Rather than after earni gs report... Any thoughts? Thanx
    There are quite a few rules regarding the sale of stock by an executive of a publicly traded company.

    http://www.sec.gov/investor/pubs/rule144.htm

    Among them is any stock issued has to be held for a year, the corporation has to sign off on it, it has to be sold by a broker etc..

    Due to the "process" these sales are scheduled a year or more in advance. They are essentially put into a trust with the broker and they are sold on the scheduled dates no matter what. Whatever the price is that day is what they are sold at, I'm not sure you could stop the sale. Once it's scheduled it's going to happen on that day.

    i read in another article. The recent sales were originally scheduled from a 2015 filing. So this was planned 18+ months ago. 
    You are confusing Company buyback with individual's holdings.

    Tim can sell his shares anytime he wants after a specified period of holding (probably a year)
    He chose to sell now for whatever reason he chose.
    edited January 2017
  • Reply 16 of 47
    hmmhmm Posts: 3,405member
    Tax planning, I am guessing. 
    His reported compensation was lower than last year. It might be a sensible time for him to do this.
  • Reply 17 of 47
    SoliSoli Posts: 9,278member
    hmm said:
    Tax planning, I am guessing. 
    His reported compensation was lower than last year. It might be a sensible time for him to do this.
    I sold some stock this month, too, because it won't get taxed until I file in 2018.
  • Reply 18 of 47
    Mikeymike said:

    Timing is kind of interesting.. Why sell just a few days before earnings...? What are the rules of the game.... I dont know about you... but to me its not very comfortable that he is selling now... Rather than after earni gs report... Any thoughts? Thanx
    There are quite a few rules regarding the sale of stock by an executive of a publicly traded company.

    http://www.sec.gov/investor/pubs/rule144.htm

    Among them is any stock issued has to be held for a year, the corporation has to sign off on it, it has to be sold by a broker etc..

    Due to the "process" these sales are scheduled a year or more in advance. They are essentially put into a trust with the broker and they are sold on the scheduled dates no matter what. Whatever the price is that day is what they are sold at, I'm not sure you could stop the sale. Once it's scheduled it's going to happen on that day.

    i read in another article. The recent sales were originally scheduled from a 2015 filing. So this was planned 18+ months ago. 
    You are confusing Company buyback with individual's holdings.

    Tim can sell his shares anytime he wants after a specified period of holding (probably a year)
    He chose to sell now for whatever reason he chose.
    I don't think I'm confusing the 2. That SEC regulation addresses stock sales of stock awards by a executive from a company.

    I'm not an expert by any means. But C-level stock sales can't be done on a whim. I don't think Tim could wake up and sell shares even if they doubled in price overnight. If it wasn't already a scheduled sale meeting the criteria listed in rule 144.

    maybe I'm wrong but for my own knowledge can you direct me to the rule that allows a c-level exec sell their company awarded stock any time they please? I've always understood it to be otherwise. 
    Soliddawson100StrangeDays
  • Reply 19 of 47
    Timing is kind of interesting.. Why sell just a few days before earnings...? What are the rules of the game.... I dont know about you... but to me its not very comfortable that he is selling now... Rather than after earni gs report... Any thoughts? Thanx
    Why do you think he's selling now? He's selling because he knows Apple's share price is going to tank upon earnings. For a CEO, he has little confidence in his company. He's not setting a very good example for 'fellow' shareholders. He could easily wait a bit longer before dumping. It will probably lead to more selling off of Apple stock by example. It's really disappointing how Apple's share price is going to drop while the rest of the major tech companies stocks are going to soar upon earnings. I'm willing to bet Alphabet's stock gets to $1000 in a matter of weeks. I honestly don't know why Tim Cook isn't able to satisfy Wall Street even a little bit when other companies make it look so easy.
    elijahg
  • Reply 20 of 47
    SoliSoli Posts: 9,278member
    Timing is kind of interesting.. Why sell just a few days before earnings...? What are the rules of the game.... I dont know about you... but to me its not very comfortable that he is selling now... Rather than after earni gs report... Any thoughts? Thanx
    Why do you think he's selling now? He's selling because he knows Apple's share price is going to tank upon earnings. For a CEO, he has little confidence in his company. He's not setting a very good example for 'fellow' shareholders. He could easily wait a bit longer before dumping. It will probably lead to more selling off of Apple stock by example. It's really disappointing how Apple's share price is going to drop while the rest of the major tech companies stocks are going to soar upon earnings. I'm willing to bet Alphabet's stock gets to $1000 in a matter of weeks. I honestly don't know why Tim Cook isn't able to satisfy Wall Street even a little bit when other companies make it look so easy.
    He could totally wait 3 months instead of selling now¡
    anantksundaram
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