Apple's Tim Cook gets one million reasons to stay on as CEO
At current rate, 2021 payout would total $15bn
Apple has given its new CEO, Tim Cook, a million reasons to stay on until August 24, 2021.
As required by Securities and Exchange Commission rules, Apple filed a Form 8-K on Friday to officially inform stockholders of company leadership changes that might affect stock performance.
Oh, if you haven't heard, Steve Jobs resigned his CEO position on Wednesday, and was replaced by former COO Tim Cook.
Included in the brief filing is the following bit of largesse proffered to Mr. Cook:
In connection with Mr. Cook's appointment as Chief Executive Officer, the Board awarded Mr. Cook 1,000,000 restricted stock units. Fifty percent of the restricted stock units are scheduled to vest on each of August 24, 2016 and August 24, 2021, subject to Mr. Cook's continued employment with Apple through each such date.
At today's value at the close of markets, those 1,000,000 shares would be worth $383,580,000.
Or, to look at it another fun – if ludicrous – way: on August 24, 2001, Apple's stock was going for $9.29 a share. Today's stock price is a 4,029 per cent increase over that 10-year-old bargain.
If Cook can keep Apple's value increasing at the same rate that Jobs managed to achieve over the past 10 years, his 1,000,000 share bonus on August 24, 2021 will be worth $15,454,438,200.
That is, should he decide to sell such a hot stock immediately upon vesting. One doubts he'll need the money. After all, according to Apple's most recent Proxy Statement, Cook's total compensation for 2010 alone was a cool $59,092,572. ®