“Apple filed a form 8-K with the SEC because of the changes in corporate leadership at the company,” Jordan Golson reports for MacRumors. “The form notifies investors of the resignation of Steve Jobs as CEO; Jobs’ appointment as Chairman of the Board; COO Tim Cook’s promotion to CEO; and the appointment of Cook to the Board.”
In connection with Mr. Cook’s appointment as Chief Executive Officer, the Board awarded Mr. Cook 1,000,000 restricted stock units. Fifty percent of the restricted stock units are scheduled to vest on each of August 24, 2016 and August 24, 2021, subject to Mr. Cook’s continued employment with Apple through each such date.
Golson reports, “This stock award is worth just over $383 million at current prices. The full amount of the stock award requires him to stay with Apple until 2021. He will get half by 2016.”
The full article, with a link to Apple’s 8-k filing, here.
MacDailyNews Take: The more stability and certainty Apple can demonstrate, the better.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]
Sheeesh! I’ll do it for half of that.
Ha!
The issue is you cannot do fifth of what Mr Cook does!
That’s what she/he said?
Good workers are hard to find!
A small price to pay.
Well that the golden parachute Eh… Even if Apple fall again he will still get that money.
If he remains as CEO….
iPhone and IPad are linked to Steve Jobs , Cook needs a new products to show he has vision !
If not he will always be a shadow replacement .
“Cook needs a new products to show he has vision !”
That’s the wrong way of looking at it.
Now the vision thing shifts to team work, in case and regardles of whether Mr Cook has vision or not (I don’t think he has to demonstrate he has vision), or to some one (insider or otherwise) that fits/fills the role.
the vision is already in place and has been for years.
His influence can be seen in the MBAir. Nuff said.
Don’t forget… they’re not giving him CASH. They’re giving him stock. For him to really make bank on this, he has to push the stock price UP (or maintain it at the current levels) for the next TEN YEARS.
Don’t you see how Apple wins by doing this? This is a brilliant insurance policy.
Expecting Tim Cook to have vision is like expecting a plumber to play the piano. Stockholders don’t give a rat’s ass about vision. All they care about is profits, which Tim Cook will undoubtedly deliver in spades.
Jonny Ive supplies the vision; who do you think has been designing every Apple product since the jellybean iMac? Cook provides the means for Ive’s designs to become a product that reaches the marketplace. That’s Cook’s genius, component source and supply, manufacturing and delivery logistics. Cook and Jobs are practically twins in the way they think, that’s why Apple has been getting ever more successful while Jobs has been on leave. There’s this expression, ‘great minds think alike’; never has it been more true than in the case of Apple’s management.
Jobs’ recommended succession plan in action.
He is very caring for the best employees he hired and tries to bound them for a long time.
This would make him a muilt billonair plus!!!
Sure, if he can guide the stock to 2,000.01. I hope he does. Until then, not quite.
With this move the board effectively shuts out the possibility of any other company trying to hire him away. Too expensive. Also locks in his full effort and attrntion because the financial reward is a known.
Well put
His full effort and vision are a LARGE part of the success Apple enjoys today. He is the operations guy. He has completely retooled their manufacturing, component sourcing, and inventory practices. His vision, shrewd negotiating and operations smarts allowed Steve to be the rockstar closer and pitchman that he is. Steves top executives have mentored and are more than ready to run the ship. Apple will be just fine. Scott and Phil will handle keynotes/launches. Ive will do what he does best, and Cook will steer the ship and continue to cut the competition off at the knees by locking up component supply and pricing.
I own 75, what job will I get?
know how to clean toilets?
Funnily enough, I do. When do I start?
That’s how he bought the 75.
Compensating executives with shares is better than giving them huge pay packets. It ties the company’s success to the success of the executive. I doubt if Tim will take $1 a year like Steve but I also doubt he’ll collect 8 figures a year like some lesser execs who run their companies into the ground.
In short, I like this. I think the shareholders overall will too.
That’s a payday!
There goes the feeling that Apple and its Products are number 1 and self importance and self worth is secondary.
Ouch!
Disagree. Apple has made a strong statement to the outside world of Tim Cook’s past/present/future value to the organization. Can’t imagine anyone on the executive team begrudging TC this award. Remember, you can have the most talented people, however, without strong leadership the ship “ain’t goin’ nowhere”.
@Paul
Wrong! There is no contradiction between Apple’s vision, style and objectives and providing monetary incentives to grow the company and increase the value of the stock options of the CEO or other top executives.
I’ll give him a few of MY shares, if he promises to stay with Apple until he retires! (It will make the rest of my shares more valuable.)
I wonder if he inherits the $1 annual salary… 🙂
why don’t they hire someone from China, so we can control cost!
Because Tim Cook is THE expert in “controlling cost.” Apple would probably be far less efficient if Tim Cook had not been COO.
That’s crazy! No way is he worth that. Should be tied what stock is at when he’s allowed to receive it.
It is.
Think about it. If the stock tanks, he gets bupkis, if it continues to climb, he’s golden.
hahahahaha you fool.. THEY’RE GIVING HIM STOCK. Of course he ‘deserves’ it. His job is to push up the stock price!!!
Now that’s what you call golden handcuffs!
So, that’s 100,000 shares a year, and at today’s prices, over $38M a year in compensation, on top of his salary.
A bit unclear whether he is receiving “options” or actual “shares”. I know the headline says “shares”, but it seems to me the headline is being simplistic rather than accurate.
If it is OPTIONS I believe the way it works is that he gets 1M “options” to buy 1M shares at a strike price of todays market price.
When these options vest….50% by 2016…..he can at that time buy and immediately sell the vested options for what they are worth minus the strike price. So if they go up he profits, and if they go down he just lets then expire without profit.
If it is actual “shares” then that is awfully generous on Apples part. What it means then is that he gets the worth of those shares on the day they vest and is sure to profit regardless of whether the stock goes up or down from todays value (assuming of course that Apple does not go bankrupt by then).
The former is performance based and the latter is independent of performance.
It is actual shares and it is perfectly ok because now he has interest to double and triple what Apple is worth now. He will be billionare. He deserves that. He is not going to ruin Apple that he has builded so hard for 13 years now.
Kristian, if it was options he would HAVE to make the stock go up! If it is shares, the stock can half and he would still make $190 odd million. No one says he will “ruin” (as you put it) Apple. Just saying that with “options” he has MORE incentive to make it go up.
Blame the SEC and the federal government. Via regulation and harassment, the government has made awarding large stock option grants more risky for both the company and the awardee. Restricted stock like this is safer, easier to plan for, and with only two triggers, much more efficient.
He’s getting shares, not options. Apple’s pretty much stopped giving out the traditional silicon valley-style stock options.
-jcr
If volatility creates stock uncertainty, stability must create stock certainty. Good going Apple! Way to create certainty.
If you factor in vesting at 5 and 10 year intervals, and what half the stock would be in 5 years + half the stock would be in 10 years, corrected for PBAJ and LATTE, he could be getting between half a billion and a billion dollars. However, predicting this kind of thing between the 2nd phase (5 and 10 year time frame) is harder than predicting hurricane trajectories! That 2nd phase is when Steve Jobs’ direct influence would be over.
Speaking as a very small shareholder, I’d say Tim would be a bargain at double that price.
-jcr
You realize that Apple paid MORE for Tim Cook (around $400 million) than it paid for PA Semi (around $300 million)!
Worth it? Yes. But to put it in perspective, when was the last time Apple bought an entire company for Tim Cook money…
I would guess that the work Tim did on the supply chain and inventory reduction alone has saved Apple more than a hundred million a year for a decade.
-jcr
A wise investment!
Talking about money …
What will Steve do for “a” buck now.
I think Cook should should voluntarily reduce his annual salary to $1 and continue the tradition that Jobs started. All future Apple CEOs salaries should be one buck. Pay em in stock options. So that only the dedicated need apply.