Apple grants CEO Tim Cook first major stock package since 2011

Apple on Tuesday granted CEO Tim Cook 333,987 restricted stock units, with the potential to earn as many as 667,974 more, if the company hits performance targets under his leadership, in the executive’s first stock grant since 2011. Each restricted stock unit represents the right to receive, at settlement, one share of common stock.

Apple CEO Tim Cook
Apple CEO Tim Cook
Stephen Nellis for Reuters:

Cook is in the ninth year of his 10-year grant from 2011. Each restricted stock unit conveys the right to one common share when it vests.

Apple’s stock closed at $114.09 on Tuesday, which puts the value of the units at $38.1 million at Tuesday’s price. But they will be more valuable if Apple’s stock price rises by the time they vest. One-third of the units will vest on April 1, 2023 with another third vesting in 2024 and the final third in 2025.

In October 2023, Cook will also be eligible to receive additional units based on performance. The target amount is 333,987 units, but the total could vary between none and double that amount based on Apple’s relative total shareholder return from fiscal years 2021 through 2023, according to a regulatory filing.

MacDailyNews Note: Apple’s regulatory filing covering Tim Cook’s stock grant is here.

8 Comments

  1. He is a great CEO and doing a great job. He deserves a lot of compensation! That seams like a lot of shares though? Does that erode the effect of the stock buyback program? Just curious.

    1. Technically, yes — a little. But practically speaking, no.

      There are 17 billion shares outstanding, so a few hundred thousand for Tim Cook is just a rounding error. Based on the value he’s created, he’s the most under-paid CEO in the world. I think it’s pretty clear he’s not doing this for the money.

  2. Agree 100%. He has proven over and over that Steve Jobs pick the right person as his successor. You might disagreed but for those of us who have been with Apple before the iPod and iPhone and iPad remember the dark days after Steve was ousted from Apple. One word to sum it for you UMAX.

  3. Again, SJ made the correct decision. On a personal note, I like those dates because I plan to retire early on Apr. 1 2024. Depending on AAPL stock performance, it could be 2023 or 2025 so Tim and all the Apple staff, keep up the good work!

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