Apple CEO Tim Cook Sells $131.7 Million in Apple Stock

[MacRumors]

Apple CEO Tim Cook was recently awarded 560,000 shares of Apple stock for serving as Apple's CEO and for Apple's strong performance under his leadership.

After receiving the award, Cook sold more than 265,000 of those shares at prices ranging from $493.50 to $500.11, netting him somewhere around $131.7 million, according to a filing published today by the SEC. The remaining 294,840 shares worth over $148 million were withheld by Apple for taxes.

As with all transactions where Apple executives sell stock, the sale was done under a Rule 10b5-1 trading plan that was adopted by Cook's trust on February 28, 2020.

Cook's stock award included 280,000 time-based RSUs and 280,000 performance-based RSUs that were based on Apple's total shareholder return relative to other companies in the S&P 500 over the three-year period from August 25, 2017 through August 24, 2020. Apple achieved a higher shareholder return than at least two-thirds of the other companies in the S&P during that time period.

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 48.28% to outperform the middle third of the companies in the S&P 500 for the performance period, and at least -3.89% to outperform the bottom third of the companies. Apple's TSR for the three-year period was 194.89%, which ranked 7th of the 442 companies that were included in the S&P 500 for the entire period and placed Apple in the 99th percentile. Therefore, all 280,000 of the RSUs subject to performance requirements vested.

Cook is set to have another 700,000 of his RSUs vest on August 24, 2021, based on his original employment agreement with Apple. Cook's net worth surpassed $1 billion this year, according to estimates calculated by Bloomberg's Billionaires Index.

Apple's stock has soared past the $500 mark this week, and the company's market value has hit $2 trillion. After selling the RSUs provided this year, Cook continues to hold 837,374 shares of Apple stock worth $418 million.

Article Link: Apple CEO Tim Cook Sells $131.7 Million in Apple Stock

 

[SSD-GUY]

Inb4 someone says it takes 'courage' to sell Apple stock.

 

[japasneezemonk]

Wonder what he’s going to do with all that money.

 

[Dwalls90]

Inb4 someone says it takes 'courage' to sell Apple stock.

Inb4 "Apple is doomed".

 

[Carnegie]

He had nearly $2 million worth of capital losses in 1 day, between when he received the shares on Monday and sold them on Tuesday.

 

[TheYayAreaLiving 🎗️]

Pay day for Mr. Cook.

 

[Carnegie]

...

Cook is set to have another 700,000 of his RSUs vest on August 24, 2021, based on his original employment agreement with Apple. Cook's net worth surpassed $1 billion this year, according to estimates calculated by Bloomberg's Billionaires Index.

...

He‘s set to have between 980,000 and 1,260,000 shares vest on August 24, 2021.

 

[lmasanti]

As far as I remember, Tim himself was the one to ask to put half of his compensation related to results.
It is interesting to know if this 4-1 split will change the ‘one thirds’ positioning.

 

[Carnegie]

As far as I remember, Tim himself was the one to ask to put half of his compensation related to results.
It is interesting to know if this 4-1 split will change the ‘one thirds’ positioning.

He had the original award changed so that 40% of the shares were performance based, whereas previously none of the shares were.

But at the same time, the award was changed from having half the shares vest after 5 years and the other half vest after 10 years to having 8% of the shares vest each year (if the performance thresholds are met) and only 10% vest after 5 years and after 10 years. That 10% is in addition to the 8% which also vests in those years.

 

[now i see it]

there comes a point where more dollars stuffed into the piggybank become meaningless. TC passed that threshold many many years ago. He could be awarded 500 billon bucks and it wouldn't change his life one spec

 

[Juicy Box]

netting him somewhere around $131.7 million,

Then invests in Epic Games.

 

[AvisDeene]

there comes a point where more dollars stuffed into the piggybank become meaningless. TC passed that threshold many many years ago. He could be awarded 500 billon bucks and it wouldn't change his life one spec

If that's the case, do you think he'd be willing to donate 2-3 million to me? It's not like he'd notice it since it's meaningless to him. 😅

 

[ThomasJL]

What a jerk. Don’t believe me? Take a look at these price hikes:

Apple's price hikes have gone way too far

Apple products have always been expensive. But over the last year, they've taken a step toward exorbitant.

www.businessinsider.com

 

[8CoreWhore]

But most employees are still part time wiith low wages.

 

[Doctor Q]

Now he can finally afford to watch Mulan on Disney+.

 

[C DM]

If that's the case, do you think he'd be willing to donate 2-3 million to me? It's not like he'd notice it since it's meaningless to him. 😅

There's money that goes to charity: https://www.macrumors.com/2020/08/24/tim-cook-donates-5-million-to-charity/

 

[Mactendo]

It'd be better if his stock award was based on the number of bugs in new OS releases. If the number of bugs is 70% lower than in the previous release, he gets his RSUs. If it's in the range from 30% to 70%, the RSUs are reduced by 50%, and if it is lower just by 30% or less, he gets zero.
And if the number of bugs is actually higher, then Tim returns the shares awarded in the previous year.

 

[SSDGUY]

What a jerk. Don’t believe me? Take a look at these price hikes:

Apple's price hikes have gone way too far

Apple products have always been expensive. But over the last year, they've taken a step toward exorbitant.

www.businessinsider.com

Yeah, but they got screaming deals on monitor stands and MacPro wheels.

 

[SDJim]

Gotta hand it to him, those numbers are literally world-class...

 

[kerr]

And this very sad story is precisely why the App Store commission must remain at 30%

 

[darkslide29]

And he has another 700,000 shares vesting a year from today? Holy moly, that’s $350 mil @$500 per share.

 

[Mactendo]

What a jerk. Don’t believe me? Take a look at these price hikes:

Apple's price hikes have gone way too far

Apple products have always been expensive. But over the last year, they've taken a step toward exorbitant.

www.businessinsider.com

Yes, it's crazy, especially the Mac mini price.
And this year iPhone prices most probably will rise again.
Yet they are able to sell previous year models at a big discount, which means their margin is really large.

 

[Carnegie]

And he has another 700,000 shares vesting a year from today? Holy moly, that’s $350 mil @$500 per share.

If Apple's total shareholder return remains high relative to most of the S&P 500, it will actually be 1.26 million shares that vest next year.

For perspective, Mr. Cook has thus far received about $1.15 billion in equity compensation since he became Apple's CEO. About $228 million of that is from RSUs he was awarded before he became CEO, the rest is from the RSU award he received when he became CEO.

 

[BGPL]

The fact that he sold those rather than waiting a year is telling. He knows the stock is at what he believes to be an all time high. No one needs 131 million to live. He knows the future of Apple better than anyone. He got a lot of 'splaining to do... most boards wouldn't also an executive officer to execute such a sale.

inb4 negativity - I'm just interpreting the tarot cards. I could care less either way.

 

[citysnaps]

Well-earned. Cook's done an outstanding job managing Apple for the last 11 years.