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.
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.