“Tim Cook, the CEO of Apple, sold off the majority of his shares in the company on Monday and cleared $11.1 million after required withholding for tax purposes, according to a form filed with the SEC. Cook exercised options on 37,500 shares and sold 20,178 shares at an average price of just under $550, netting the $11.1 million payday (the balance of the stock was sold at $545.17 for withholding) across two days, Saturday and Monday,” MacNN reports.
“The 37,500 shares represents exactly half of a 75,000-share grant Cook received in 2010 as compensation for his time as acting CEO of the company during Steve Jobs’ various medical leave (he also received $5 million in cash at the time),” MacNN reports. “Cook has previously sold the first half, and cashed in the remainder on the same day it vested. Cook will receive another award of 200,000 shares that was originally granted in September of 2008 on March 24th, part of a retention award that was given to several Apple executives at the time.”
MacNN reports, “The move leaves Cook with just 13,817 shares in the company until then — and he will receive another 500,000 reserved stock units (RSUs) on his fifth-year anniversary of being Apple’s CEO in 2016.”
More info in the full article here.
[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]
Ok Tim, can we split the stock now? So this poor student can finally own some stock?
Thank you ^_^
Amen. I’m not exactly a poor student, but at these prices, it’s difficult to own more than a few shares.
It doesn’t matter how many shares you own. Decide how much money you want to invest and buy an appropriate number of shares.
No need for a split to own shares. Sign up with Sharebuilder’s Automatic Investing plan and start participating with as little or as much money as you can as long as you do it periodically.
+1. That is a super easy way for people who can’t currently afford to buy whole shares at a time to be able to purchase fractional shares.
Use some service like Sharebuilder to buy fractional amounts of the stock.
If I can’t afford to buy even ONE share for $570 (or two shares for $1140 or five shares $2850), I wouldn’t put money into stocks (any stock). Funds that may be needed within a few months to pay bills should not be put at risk, because even AAPL can have a major drop if the overall stock market tanks (which is quite possible).
It’s the percentage change in stock price that matters, not the number of shares. Owning two shares of AAPL at $550 is the same as owning ten shares at $110.
Proof I’m biased? If Balmer, Balsillie or other CEOs did this I would see it as a sign they don’t believe in their company/believe they’re headed downhill but with Cook doing it, I don’t think it’s a big deal. *sigh*.
With Balmer, Balsillie and many others, they had a large number of shares at the start (as founders) and slowly sold off shares to take money out of the company. If any of them sold a large chunk of their holdings that would be both a lot of shares and a huge signal of their lack of confidence.
It’s very different when you’re just a working stiff like Tim Cook, selling some of the options you’ve been given to plan for your future, buy some property, etc. (Okay, so his future is looking pretty bright, but the point is he never had a large pile of shares to begin with.)
2008 – he was granted 200,00 shares
2010 – he was given 75,000 shares
2016 – he earned another 500,000 shares
“Cook has previously sold the first half, and cashed in the remainder on the same day it vested” – leaving 13,817 shares now to date.
If 11 million equates to 37,500 shares just cashed in Monday, and if understood correctly already cashed in the first half… then thats about 27 million earnings, required to pay for income taxes.
OR perhaps I should be reading this as Cook cashes his stocks to pay his taxes this year? So Tim is paying 11 million in taxes.
5 Million he earned on the job.
One would think thats a pretty sweet year fro any company.
27 Million – guess he needs to help rebuild southern Florida?
“Cook has previously sold the first half, and cashed in the remainder on the same day it vested”
That’s a good point. Selling half to pay the taxes is a pretty common thing to do when options vest.
Selling out at the peak. It’s all downhill from here, baby.
You obviously just read the headline, as usual, so you missed this bit:
““The 37,500 shares represents exactly half of a 75,000-share grant Cook received in 2010 as compensation for his time as acting CEO of the company during Steve Jobs’ various medical leave (he also received $5 million in cash at the time),” MacNN reports. “Cook has previously sold the first half, and cashed in the remainder on the same day it vested. Cook will receive another award of 200,000 shares that was originally granted in September of 2008 on March 24th, part of a retention award that was given to several Apple executives at the time.”
MacNN reports, “The move leaves Cook with just 13,817 shares in the company until then — and he will receive another 500,000 reserved stock units (RSUs) on his fifth-year anniversary of being Apple’s CEO in 2016.”
BLN, you really are a dumb fsck.
@ Rorschach,
I like to think BLN’s posts are kind of a “mirror”. You read into them what you like. Almost a kind of test. They reveal more about the observer than anything.
Talk about swallowing the bait, eh BLN?
BLN reminds me of Zune’s comments.
Except Zune Tang was funny.
It’s fun to mess with the zealots. Pretty soon they’ll be knocking on your door trying to sell you AAPL.
Somewhat agree… with BLN, but i need to learn more about Tim Cook.
Here’s a article about his house. I don’t think his first motivation is money. Pretty sure he drank the last of Steve’s Kool-aid.
http://tech.fortune.cnn.com/2012/01/11/tim-cooks-modest-home/
Much appreciated CndBob.
Tim Cook’s modest home – yeah that shines some light on things. Perhaps, Cook is the real deal. That does say a lot for me. I’m open to changing my thoughts on Cook. I hope to read more about him soon. But as an inventive and inspiring CEO that will lead on the roots of Apple – do you have anything like that to share.
He earned 5 Million + 75,000 shares about 22 Million in stock?
He cashed half the stock the day he got it.
And now has cashed in about the remaining 11 Million.
By 2016 he will gain another 500,000 shares more.
Is this the CEO Apple needs?
When he takes home 1 dollar a year – then call him CEO.
You are a tool.
and to answer your idiotic question, Yes.
I’m a tool… better then a nob such as you.
No question is idiotic; only the lesser temperament from those offended for which they shed no logical or reasonable answer to reply with.
XS – yes because?
Cook is smart. Cook is wise. Cook is a good man.
Cook was appointed. Cook is doing a great job.
All i seek is more details.
My question is blunt however not so insulting; and certainly not to you personally to you.
If you think Tim Cook is motivated by money, you missed the part of his history where he worked for comparatively little and built Steve’s trust in his passion for the mission that is Apple. When you become CEO of the world’s most valuable corporation, your personal expenses (attorneys, security, etc) skyrocket. None of us have any idea what Tim plans to do with that money, so don’t be so quick to judge him or the meaning behind the sale.
Well Jim, Thank you. This is the sort of stuff I do need to read.
I hear you, appreciate you sharing information and I understand that Tim needs to move out his earning for tax purposes.
Nothing says what he will do will the money.
This represents about 27 million for one year.
Will he (Tim) not be required Tim to claim income tax – on all that now?
I am sorry, even though I do think TIm is a great man. I just have not read about Tim as the passionate, invigorating, inspirational, inventive leader for Apple – yet. I will invest some time to read more.
And, Hope to curve this bitter tasting Apple I have.
I thought his retention bonus was a million shares for ten years split half in 2016 and half in 2021?
Let the poor guy enjoy the financial benefits of his success. He earned it. He’s as responsible as anyone for Apple’s immense success over the last decade.
Also, these are OPTIONS. He did not actually own the stock he sold, until the moment be exercised the options. It’s an “option” to buy the stock at a lower price. If that price was $100, his profit is around $450 per share, so to pay the tax on that profit, he needed to exercise even more options.
Options have to be exercises at some point, or they will expire. He’s exercising them now. What’s the big deal…?
Well explained as usually ken1w.
Cook doesn’t have other billion dollar companies and investments to provide him with income like Jobs had. If his freed up $11m allows him enough comfort to be able to concentrate entirely on running Apple then it will benefit every shareholder.
these goddamn CEOs are making hell of a money each day !!!! ….while majority of US citizens are losing their jobs rapidly ! capitalism has failed us people !!!