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