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Apple CEO Tim Cook Gets First Stock Grant In A Decade Worth Over $114M

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Apple CEO Tim Cook Gets First Stock Grant In A Decade Worth Over $114M

Apple Inc (NASDAQ: AAPL) CEO Tim Cook has received a stock bonus, worth nearly $114 million as of Apple's Tuesday closing price, in recognition of his work at the tech giant.

What Happened: The Cupertino-based tech giant granted 333,987 restricted stock units to Cook in a transaction dated Sept. 27, or about $38 million, a filing with the United States Securities and Exchange Commission indicates. 

One-third of the grant will vest each subsequent year on April 1, beginning in 2023 until 2025, as per the filing.  Each restricted stock on settlement gives Cook the right to receive one common share of Apple.

“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,” Apple’s board of directors told Reuters in a statement.

Why It Matters: This is the 59-year old's first stock grant since 2011 and there's a possibility for him to earn another 667,974 stock units should he meet performance targets, Reuters reported.

In Oct. 2023, Cook will again become eligible to receive an award of 333,987 stock units based on his performance, Reuters noted.

The performance is reportedly metered on Apple’s relative total shareholder returns between fiscal years 2021 to 2023.

On Tuesday, Apple also granted Chief Operating Officer Jeff Williams 89,064 restricted stock units on terms similar to Cook's, as per Reuters.

Last month, Cook became a billionaire as Apple’s stock neared $2 trillion in valuation. 

Cook’s ownership of Apple stock has been incremental unlike Facebook Inc (NASDAQ: FB) CEO Mark Zuckerberg and Tesla Inc (NASDAQ: TSLA) CEO Elon Musk, both of which own large chunks of their respective companies.

Price Action: Apple shares closed nearly 0.8% lower at $114.09 on Tuesday and gained almost 0.2% in the after-hours session.

Photo by Joao-Pierre Ruth via Flickr

 

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