“Apple CEO Tim Cook and Senior Vice President Eddy Cue received 560,000 and 350,000 restricted stock units respectively this week, worth a combined $93.8 million based on AAPL’s closing price of $103.12 on Monday, according to a pair of filings with the U.S. Securities and Exchange Commission,” Joe Rossignol reports for MacRumors.
“Cook was awarded with 280,000 performance-based restricted stock units in full based on Apple’s performance relative to the other companies in the S&P 500 over a two-year period ending August 24,” Rossignol reports. “Cook and Cue did not sell any of their RSUs, although 290,836 and 171,853 shares were withheld by Apple respectively to satisfy the minimum statutory tax withholding requirements on vesting of RSUs.”
Read more in the full article here.
MacDailyNews Note: From Cook’s SEC FORM 4:
Explanation of Responses:
1. The number of restricted stock units (RSUs) includes 280,000 time-based RSUs and 280,000 performance-based RSUs.
2. The number of performance-based RSUs that vested was determined based on Apple’s total shareholder return (TSR), relative to the other companies in the S&P 500 over a two-year period from August 25, 2013 through August 24, 2015. TSR is calculated based on the change in a company’s stock price during the two-year period, taking into account any dividends paid during that period, which are assumed to be reinvested in the stock. In accordance with the terms of the award, the beginning value used for calculating TSR is the average closing stock price for the 20 trading days prior to August 25, 2013. Apple’s beginning value was calculated to be $68.56 (adjusted for dividends and Apple’s 7:1 stock split in June 2014). Similarly, the ending value used for calculating TSR is the average closing price for the 20 trading days ending on August 24, 2015. Apple’s ending value was calculated to be $121.18 (adjusted for dividends).
3. Mr. Cook’s award provides that if Apple’s relative TSR performance is within the top third of the companies that remain in the S&P 500 for the entire performance period, the 280,000 performance-based RSUs vest in full. If Apple’s performance is in the middle third, the RSUs will be reduced by 50%, and if Apple’s performance is in the bottom third, the RSUs will be reduced to zero. Apple needed to achieve a TSR of at least 41.36% to beat the middle third of the companies in the S&P 500 for the performance period, and at least 16.93% to beat the bottom third of the companies. Apple’s TSR for the two-year period was 76.76%, which ranked 46th of the 458 companies that were included in the S&P 500 for the entire period and placed Apple in the 90th percentile. Therefore, all 280,000 of the RSUs subject to performance requirements vested.
4. Each RSU represents the right to receive, at settlement, one share of common stock. This transaction represents the settlement of RSUs in shares of common stock on their scheduled vesting date.
5. These shares are held through Mr. Cook’s trust.
6. No shares were sold. 290,836 shares (51.9% of the total number of shares) were withheld by Apple to satisfy the minimum statutory tax withholding requirements on vesting of RSUs.
7. This award was granted August 24, 2011. The remaining 4,760,000 RSUs in this award are scheduled to vest as follows: 700,000 RSUs vest on August 24, 2016; 700,000 RSUs vest on August 24, 2021; 1,680,000 vest in six equal annual installments commencing August 24, 2016; the remaining 1,680,000 are all subject to performance based vesting requirements and will potentially vest in six annual installments commencing August 24, 2016. All unvested RSUs are subject to continued employment through the applicable vesting date.Cure’s SEC FORM 4 is here.
SEE ALSO:
Did Apple CEO Tim Cook personally benefit from his email to Jim Cramer? – August 26, 2015
Let Apple CEO Tim Cook speak (about business) – August 26, 2015
SEC to sanction Apple CEO Cook for his $63 billion email? – August 24, 2015
Apple shares recover from white-knuckle plunge after CEO Cook emails Jim Cramer – August 24, 2015
Apple CEO Cook may have violated U.S. SEC rules with email to Jim Cramer – August 24, 2015
CEO Tim Cook to Jim Cramer: Apple is seeing strong growth in China through July, August – August 24, 2015
Finally. That explains the email to Cramer.
Cramer is a journalist who asked a question. Cook answered the question, telling the truth. Whereas, annalists and others who bet against Apple, lie all day long.
So, what’s the problem here?
Not specifically point a finger at Tim, people try to manipulate the system all the time. It should be illegal for lying, not for telling the truth.
take back eddy’s shares
Exactly.
As fucked up as iTunes and Apple Music is, Eddie needs to tuck in his shirt and leave.
Amen. He has failed. Jobs would’ve kicked him out by now. When you make that much money you have to produce. He has failure after failure. Not to mention the streaming TV service which is still off in the future if even possible. It’s nothing personal. It’s just business. He needs to go Timmmy!
Eddy Cue doesn’t do anything well and what he does do, he does badly, but he’s CUBAN and that counts on Tim Cook’s DIVERSITY counter, so he stays and gets richly rewarded. If he were a black woman, he’d get double.
Are you suggesting Eddy is Apple’s Balmer?
Cook is Ballmer. Cue is Cook’s monkey.
Are we all sure that Eddy’s not also gay…
He’s just got that look about him.
How is it that the Libs and the “income inequality” crowd on these forums never bitch about how much the Gay CEO of Apple makes?
If this were an oil company….
What an outrage!
This guy has wasted 130 Billion of Apple money on buybacks and dividends that hurt Apple image (from a growth stock to a value holdover). He had one disaster after another from Maps to Beats purchase to Apple entry into Dow. He introduced Apple Watch when it was not ready and tried to sell it at ridiculously obscene prices. The present stock mess is his doing. If he had used Apple cash for growing the company, Apple stock would now be close to 250.If the Board was doing its job, he should have received an F grade. But you know how the corporate America works. Boards are rubber stamps for incompetent CEOs to exploit.
Eddie Cue needs to be sacked immediately.
To be paid such vast sums of money for the mismanagement of Apple Music is a travesty.
I don’t mind paying top dollar for a bit of kit / software but when it is so poorly executed, he should not be rewarded for failure – kick him out.