Apple awards Tim Cook 1,000,000 shares of stock as CEO bonus to stay until 2021

“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.]

49 Comments

  1. 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 .

    1. “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.

    2. 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.

    3. 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.

      1. 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.

  2. 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.

    1. 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.

  3. 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.

    1. 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”.

    2. @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.

  4. 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… 🙂

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