“Back in the summer of 2013, facing a modest shareholder revolt, Apple CEO Tim Cook did one of the more remarkable things I’ve seen in years of writing about corporate compensation: He volunteered to rewrite the rules for the restricted stocks units he had already been granted,” Chris O’Brien reports for VentureBeat.
“He was under no obligation to do so. But shareholders had seen the company’s stock cut almost in half over the past year and were getting nervous,” O’Brien reports. “Cook, along with Apple’s board and executive team, wanted to make a defiant statement about their strong belief in the company’s future.”
“So the board decided to change the rules about vesting for restricted stock units by tying them even more closely to the company’s performance. While the rules were written for new RSUs, Cook asked to have them applied retroactively to the massive stock award he had received when he became CEO in August 2011,” O’Brien reports. “The company’s latest proxy filing yesterday… reveals that Cook is facing enormous downside this year, for a couple of reasons.”
Read more in the full article here.
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