Apple Awards CEO Tim Cook Major Stock Grant
Apple Inc. awarded Chief Executive Officer Tim Cook a new stock grant, his first since taking charge in 2011, that will vest over time.
Based on Apple’s positive share development, the restricted units of Apple stock as well as performance-based grants could take his total to more than 1 million shares by 2025. The shares are worth $114 million based on Tuesday’s closing price of $114.09.
Apple’s board said in a statement, “Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity. For the first time in nearly a decade, we are awarding Tim a new stock grant that will vest over time in recognition of his outstanding leadership and with great optimism for Apple’s future as he carries these efforts forward.”
As per a filing with the U.S. Securities and Exchange Commission, the equity comes in two packages. The first comprises 333,987 restricted stock units that vest in thirds on an annual basis starting in 2023 till 2025. The other has 333,987 units that will vest in 2023.
Along with this primary compensation, Cook also receives a salary and an annual bonus. In 2019, his salary was $3 million and bonus was $7.67 million. His total compensation, including stock, was over $125 million.
The awarded stocks could double if Cook meets targets related to Apple’s performance on the stock market, but can also lose all if Apple underperforms.
In August, Apple had touched a $2-trillion market value, becoming the first U.S. company to reach the milestone. Apple stock had more than doubled over the past five months, since March, when its market cap was $1 trillion, being benefited by the pandemic as the majority of employees are forced to opt work from home, and schools worldwide are closed forcing students to continue their studies online.
The tech giant is currently the most valuable company in the entire world even as the majority of the world is grappling with coronavirus – induced financial crisis.
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