“Apple Inc. Chief Executive Tim Cook received a one-time stock award worth nearly $400 million, the largest given by a company in a decade,” Alexei Oreskovic reports for Reuters.
“The company’s board granted Cook 1 million restricted stock units (RSUs) to signal its confidence in Cook after Steve Jobs turned over the helm of the iPhone and iPad maker to his long-time lieutenant in August,” Oreskovic reports. “The stock award, half of which vests in 2016 and the remaining half in 2021, was worth more than $376 million, based on the closing price of Apple’s shares on August 24, 2011, the company said in a Monday proxy filing.”
Oreskovic reports, “The only one-time stock award in recent memory that was worth more, said Boyd, was the January 2000 stock option package that Apple gave co-founder Steve Jobs. The 40 million options in that award were valued at more than $600 million at the time, said Aaron Boyd, head of research at Equilar, an executive compensation data firm.”
“Jobs, who died in October after a years-long battle with cancer, owned 5.5 million shares of Apple, according to the filing,” Oreskovic reports. “Jobs received $1 a year in salary during the past three years, according to the filing, while Cook received a salary of about $900,000 in 2011.”
Read more in the full article here.
MacDailyNews Take: Did you know that after his return to Apple, Steve Jobs never sold a single share of his Apple stock?
Tim Cook’s stock award was put in place to help insure that he stays for at least 10 years. It’s also an impetus for Cook to keep delivering, so that when his stock vests, his shares are worth as much as possible. Right now, for example, on paper his award is worth over $421 million. Beyond Cook’s obvious skills, this insurance policy is worth much more than $376 million to Apple in terms of continuity and having a smooth CEO succession. Cook is worth every penny and then some.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]