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Tim Cook Receives Restricted Stock Units Worth Up to $114 Million, Ensuring He'll Remain Apple's CEO Through 2025

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Apple CEO Tim Cook was this week awarded 667,974 restricted stock units or RSUs worth more than $76 million at Apple's current price, according to a filing with the SEC. The first half of the RSUs are set to vest in one-third increments in 2023, 2024, and 2025, so Cook will receive 111,329 shares every April starting in 2023.


The second half of the RSUs are performance-based awards and will vest on October 1, 2023, based on Apple's relative shareholder return. Cook can potentially receive up to 200% of the 333,987 RSUs awarded for performance.
These performance-based restricted stock units are scheduled to vest on October 1, 2023. The "target" number of restricted stock units is reported. Between 0% and 200% of the target number of units may vest based on Apple's relative total shareholder return from the first day of Apple's fiscal 2021 and ending with the last day of Apple's fiscal 2023.
Paired with the time-based stock awards, Cook can earn up to 1,001,961 shares worth more than $114 million today if Apple's performance in the S&P 500 is in the 85th percentile or higher relative to other companies.

This is the first stock grant that Cook has received since 2011, with the last of that grant set to vest in 2021. As noted by Reuters' Stephen Nellis, Apple's board of directors issued a statement on Cook's RSU award:
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.
Several employees on Apple's executive team have also received stock awards, including Luca Maestri, Deirdre O'Brien, and Jeff Williams, all of whom have been awarded 178,128 shares. As with Cook's award, half of these RSUs will vest between 2023 and 2025, while the rest are performance based awards.

The RSUs serve as bonus compensation for Cook and Apple's executives, and will encourage employees to stay with the company through at least 2025, which is when everything will be fully vested. Cook has been Apple's CEO since August 2011, and there has been some speculation lately on how long he will continue to work for Apple. Cook in a recent interview said that he can't envision his life not working at Apple.
I consider it the privilege of a lifetime to be here in this role at this time. I love working with this team. I consider them family. It's hard to explain. It may sound like messaging or something, but it's not. It's that deep in my heart, I really love the people I work with and currently it's tough to envision my life without that. So we'll see. At some point, of course, we all do something different, but at the moment, there's no place I would rather be than right here.
When Cook does opt to retire at some point in the future, Apple Chief Operating Officer Jeff Williams could assume the role of CEO, according to a recent Bloomberg report. Williams is "primed" to take over for Cook if necessary and considered the "heir apparent" within Apple.

Article Link: Tim Cook Receives Restricted Stock Units Worth Up to $114 Million, Ensuring He'll Remain Apple's CEO Through 2025
 
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kiranmk2

macrumors 6502a
Oct 4, 2008
920
462
At least these are RSUs meaning that the company has to perform well for several years before he can sell them. Not like the executives at other companies who get share awards they can sell straight away meaning they don't really care if the company does well beyond the current year.
 

iFan

macrumors regular
Jan 3, 2007
191
518
This is somewhat surprising and great news for AAPL shareholders who want Tim Cook to stay in the role. With the last of his original 2011 RSU's expiring next year, it seemed like Cook was either going to retire or the board would wait until next year to announce a new compensation package. He is worth every penny (and more than 50% goes to taxes anyway!)

On the other hand, Apple has overspent on a few other exec packages over the past decade. Angela was an insane amount of $$$ for what she brought, and I believe O'Brien is even worse (lack of retail experience.) I would love to see Apple have a more diverse exec team and board in the coming years, but I also wish they were smarter with who was promoted into these prime positions. Just my 2 cents!
 

needsomecoffee

macrumors regular
May 6, 2008
204
511
Seattle
Perhaps with the huge accumulated wealth Tim and the other C-Level execs have, they might now begin to address the environmental impact of the disposable culture they have engendered. An Apple version of the Fairphone as an option for those who want to minimize their environmental footprint while staying inside the walled garden. Top line impact might reduce EPS, but how much do they need in their retirement plans. Alternatively, Apple may get such great kudos, the top live affect might be offset. Now that would be INNOVATION, and would leave a great legacy.
 

iFan

macrumors regular
Jan 3, 2007
191
518
remove earbuds and charger from iPhone box, Pay CEO 100 million dollars. Ok, now I see it

Apple's GM over the past decade has been pretty steady. Some things add to cost (5G, new antenna, new design) and others are removed to balance that out.

Exec compensation (stock) doesn't impact cost of products. Unless an accountant wishes to correct me, these shares are created and cause dilution to existing shareholders. Of course, apple has the largest buyback program in the world which more than counters this.
[automerge]1601422524[/automerge]
Perhaps with the huge accumulated wealth Tim and the other C-Level execs have, they might now begin to address the environmental impact of the disposable culture they have engendered. An Apple version of the Fairphone as an option for those who want to minimize their environmental footprint while staying inside the walled garden. Top line impact might reduce EPS, but how much do they need in their retirement plans. Alternatively, Apple may get such great kudos, the top live affect might be offset. Now that would be INNOVATION, and would leave a great legacy.

Google Lisa Jackson
 

Kierkegaarden

macrumors 6502
Dec 13, 2018
281
461
USA
I just don’t see Jeff Williams as the CEO of the most valuable company in the world. Seems like a nice guy, but I’m just not getting the leader vibe from him. I think Scott would have been next in line if he were still around. Craig is my favorite executive at Apple, but I don’t know if he’s interested in the position.
 

Kierkegaarden

macrumors 6502
Dec 13, 2018
281
461
USA
This is somewhat surprising and great news for AAPL shareholders who want Tim Cook to stay in the role. With the last of his original 2011 RSU's expiring next year, it seemed like Cook was either going to retire or the board would wait until next year to announce a new compensation package. He is worth every penny (and more than 50% goes to taxes anyway!)

On the other hand, Apple has overspent on a few other exec packages over the past decade. Angela was an insane amount of $$$ for what she brought, and I believe O'Brien is even worse (lack of retail experience.) I would love to see Apple have a more diverse exec team and board in the coming years, but I also wish they were smarter with who was promoted into these prime positions. Just my 2 cents!
I really thought Angela was being groomed to take over as CEO down the road. Aside from that, I believe Apple or any other company should always choose quality over diversity when selecting executives.
 

NoImDirtyDan

macrumors member
Jun 18, 2020
49
193
I feel like a lot of people don't understand how much work and stress being a CEO really is. Especially at the caliber of a company like Apple. 99% of people would not be able to handle the position and/or perform to meet industry, consumer, and shareholder needs. There is a reason these executives see large incentives.
 

macizcool

macrumors regular
Feb 4, 2010
131
72
Meanwhile, the employees at the bottom of the totum pole received less RSUs, despite the company doing well. Thanks, Apple.
 
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