Apple's Cook receives first time-based stock grant since 2011, incentivizes tenure into 20...

Posted:
in General Discussion edited September 2020
Apple CEO Tim Cook and his core leadership team this week received restricted stock unit awards designed to incentivize continued work at the company into 2025.

Tim Cook


Handed out on Sunday, the awards include tenure- and performance-based RSUs scheduled to vest over the next five years, according to a Securities and Exchange Commission filing on Tuesday.

Cook gained the most in two separate transactions, each resulting in the acquisition of 333,987 RSUs. As per Apple's benefits guidelines, the first batch is slated for conversion into common stock in three equal installments on April 1, 2023, April 1, 2024, and April 1, 2025. The second clutch of 333,987 RSUs are performance-based and will vest on Oct. 1, 2023.

Cook's tenure-based grant is his first since receiving a ten-year award in 2011. If fulfilled, the incentive will see the CEO continue in his capacity into 2025. Apple's board of directors issued a statement on the grant, as relayed by Reuters' Stephen Nellis on Twitter.
"Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity. For the first time in nearly a decade, we are awarding Tim a new stock grant that will vest over time in recognition of his outstanding leadership and with great optimism for Apple's future as he carries these efforts forward."
As with previous performance-based awards, Cook has the opportunity to see 200% of the 333,987 granted units vest if Apple's total shareholder return meets growth requirements measured between the first day of Apple's fiscal 2021 and the last day of the company's fiscal 2023. In total, the executive stands to gain more than $114 million in time- and performance-based awards at today's stock price.

Cook has 1,260,000 RSUs remaining in his current time-based 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. Most recently, the Apple chief in August acquired and immediately sold 560,000 fully vested RSUs worth $132 million.

Also on Sunday, Apple COO Jeff Williams, CFO Luca Maestri, SVP of Retail and People Deirdre O'Brien, and General Counsel and SVP of Legal and Global Security Katherine Adams each received 178,128 RSUs split evenly between time- and performance-based units. Like Cook's award, the time-based RSUs vest on April 1, 2023, April 1, 2024, and April 1, 2025, while the performance-based units have the potential to vest at 200% on Oct. 1, 2023.

Finally, accounting officer Chris Kondo received 17,813 RSUs scheduled to vest in installments through October 2024.

Comments

  • Reply 1 of 10
    I don’t know, but if he needs incentive to stay, it’s time for him to go.

    “Unparalleled innovation” yeah like 800 dollar wheels with no brakes. Novel concept. Or a 1000 dollar bar of aluminium (also to be used as a monitor stand). Truly innovative. 
    edited September 2020 elijahgSpamSandwichlkruppchemengin1
  • Reply 2 of 10
    chasmchasm Posts: 2,609member
    Yes, I’m sure Some Troll on the AI Forums could do a much better job of running the company. After all, Apple’s practically broke and so unpopular now. 😆
    tmayRayz2016muthuk_vanalingamfastasleepfred1mike1DogpersonronnlkruppJWSC
  • Reply 3 of 10
    We must remember that the origina 2011 payment was set full ‘in time’ and Cook asked to be partially performance-based.
    spock1234jony0
  • Reply 4 of 10
    borps said:
    I don’t know, but if he needs incentive to stay, it’s time for him to go.

    “Unparalleled innovation” yeah like 800 dollar wheels with no brakes. Novel concept. Or a 1000 dollar bar of aluminium (also to be used as a monitor stand). Truly innovative. 
    Some really original material here. 🙄
    gregoriusmmuthuk_vanalingamrandominternetpersonfastasleepmike1DogpersonronnJWSCkuduspock1234
  • Reply 5 of 10
    I’ve had my complaints about Apple, mostly about the regularly bumbled services, maybe a couple other minor disagreements here or there, but I’m proud to say I’ve never jumped on any of the anti-Tim bandwagons over the years. I can’t imagine anyone doing a better job then Tim in his ability to carry out the Apple legacy, and ethos, both in the products, and in fulfilling the financial potential of Apple’s ingenuity and aesthetic integrity. I can’t imagine anyone more loyal or dedicated to Apple, not even close. He’s earned every penny he makes from Apple 10 fold. I hope he buys some private islands, or whatever makes him happy. Thanks Tim!
    muthuk_vanalingamchasmrandominternetpersonfastasleepDogpersonronndewmericmackuduspock1234
  • Reply 6 of 10
    I’ve had my complaints about Apple, mostly about the regularly bumbled services, maybe a couple other minor disagreements here or there, but I’m proud to say I’ve never jumped on any of the anti-Tim bandwagons over the years. I can’t imagine anyone doing a better job then Tim in his ability to carry out the Apple legacy, and ethos, both in the products, and in fulfilling the financial potential of Apple’s ingenuity and aesthetic integrity. I can’t imagine anyone more loyal or dedicated to Apple, not even close. He’s earned every penny he makes from Apple 10 fold. I hope he buys some private islands, or whatever makes him happy. Thanks Tim!
    This.  And I hope he sticks around well past 2025--if he still has the passion and desire to do so.
    fastasleepronnricmacpatchythepiratekuduspock1234jony0
  • Reply 7 of 10
    mike1mike1 Posts: 3,125member
    borps said:
    I don’t know, but if he needs incentive to stay, it’s time for him to go.

    “Unparalleled innovation” yeah like 800 dollar wheels with no brakes. Novel concept. Or a 1000 dollar bar of aluminium (also to be used as a monitor stand). Truly innovative. 
    Ridiculous comment. Show me a mid-large sized company that doesn't use RSUs to attract and retain talent.

    Dogpersonronnrandominternetpersonkudujony0
  • Reply 8 of 10
    dewmedewme Posts: 4,637member
    I’ve had my complaints about Apple, mostly about the regularly bumbled services, maybe a couple other minor disagreements here or there, but I’m proud to say I’ve never jumped on any of the anti-Tim bandwagons over the years. I can’t imagine anyone doing a better job then Tim in his ability to carry out the Apple legacy, and ethos, both in the products, and in fulfilling the financial potential of Apple’s ingenuity and aesthetic integrity. I can’t imagine anyone more loyal or dedicated to Apple, not even close. He’s earned every penny he makes from Apple 10 fold. I hope he buys some private islands, or whatever makes him happy. Thanks Tim!
    I could not agree more. The bottom line though is that money is always just a proxy for something else, but the one thing it cannot stand-in for is time. I know that Tim is going to ensure he leaves Apple in an even better place than it was at when he was handed the reins from Steve. I just hope that he does so at a time in his life where he gets to fully enjoy the fruits of his labor for many more years to come.
    edited September 2020 kuduspock1234jony0
  • Reply 9 of 10
    TJJTJJ Posts: 12member
    Tim Cook is doing a fabulous job and deserves any incentives or bonuses that he gets. His whole crew is awesome also and they all work hard and do a great job. 
    kuduspock1234jony0
  • Reply 10 of 10
    By all accounts, Tim Cook is one of the most decent and honest CEOs in the world. I still remember when he gave up ~$75 million in dividends just to avoid the appearance that his AAPL holdings may have influenced his decision to start paying dividends for Apple shareholders. Not many like him in the world - in any industry. 

    Live Long and Prosper, Tim. 🖖🏽
    patchythepiratedewmejony0
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