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Apple awards CEO Tim Cook one million stock shares - if he stays until 2021

by Chris Rawson Aug 26th 2011 at 5:55PM

Now that Tim Cook is CEO of Apple, how do you ensure you keep him at the company's helm? How about by awarding him one million shares of Apple's stock. A form 8-K filed with the SEC gives the details:

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.

Cook will receive half a million shares in five years, and the other half million in ten. That's got to be a major incentive both for staying on with Apple and ensuring the company continues to run well. According to MacRumors, that stock is worth just over US$383 million today.

It looks like we'll be saying "Apple CEO Tim Cook" for quite a while.



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Now that Tim Cook is CEO of Apple, how do you ensure you keep him at the company's helm? How about by awarding him one million shares of...
 

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person287

All I can say is that he obviously cares a lot about apple! I got a reply to an email I sent to him at about 6:30 US Time and the IP Looks like a Public WiFi place (AT&T Wayport). To be honest though he's pretty much been CEO since January and everything looks like it's going smoothly, so I'd expect Apple will continue to keep growing at the same rate.

August 29 2011 at 6:39 AM Report abuse rate up rate down Reply
shaunisadirty

Why? These people work their butts off their whole lives to make massive piles of money like this...and then die. What's the point of making this much money when you just die with it sitting in some bank?

Don't get me wrong, I love making money, but 383 million? c'mon now.

August 27 2011 at 9:12 AM Report abuse +1 rate up rate down Reply
2 replies to shaunisadirty's comment
r_r

And if he screw up, that'll be like 3M in 10 years.

August 27 2011 at 3:44 PM Report abuse rate up rate down Reply
Martin C

If it doesn't matter either way, why would you ever settle for the lesser amount?

August 27 2011 at 9:27 PM Report abuse rate up rate down Reply
sip

Continuity is important, especially if you have the right person at the top of the tree, and Apple's directors believe that Tim Cook is the man for the job and the one most likely to follow Jobs' philosophy.

Let's wait and see -- he may yet surprise us all and surpass his achievements at Apple so far.

August 27 2011 at 12:26 AM Report abuse rate up rate down Reply
1 reply to sip's comment
zandro

I agree, a lot of talk has been can Tim Cook live up to Jobs. I think Cook is in a great position to do BETTER than Jobs. Cook has been under his wing this whole time and Cook has momentum on his side, so the best is yet to come from Apple.

August 27 2011 at 1:35 AM Report abuse rate up rate down Reply
Tony

Wow $450M (ish) for 10 years of service sounds fair... That doesn't even include his salary and bonuses and other bennies... Holy crap.

August 27 2011 at 12:19 AM Report abuse rate up rate down Reply
Paul

Apple really screwed up this time. They could have gotten ME for half the price. : )

August 26 2011 at 8:43 PM Report abuse rate up rate down Reply
1 reply to Paul's comment
tnargus

LOL. Brilliant :D

August 27 2011 at 4:00 AM Report abuse rate up rate down Reply
scottishwildcat

"That's got to be a major incentive both for staying on with Apple and ensuring the company continues to run well." Only if he's motivated by personal wealth, which you'd have to assume, having been in a top position at Apple for some time, he already has plenty of. If he's not motivated to stay without that sort of offer on the table, he's the wrong person to be leading Apple.

As a European, I've never understood why Americans seem to find share options to be such a great perk and incentive to stick around anyway -- I've worked for a few US companies over the years, all of whom have insisted on paying my "bonuses" in share options at one time or another, and not a single one of them has been worth a cent by the time they've vested. If I deserve a bonus, I want it in cold, hard cash, please -- and today, not five years from now.

August 26 2011 at 7:10 PM Report abuse rate up rate down Reply
2 replies to scottishwildcat's comment
ostiarius

I'll take any Apple stock that you don't want.

August 27 2011 at 12:24 AM Report abuse rate up rate down Reply
steve

This is a stock grant, not a stock option, so unless Apple goes out of business, it is pretty much guaranteed to be worth a lot of money. And it is not a bonus for what he has done, it is a retention incentive, to get him to stay at the company for a long time.

As far as him already having plenty of wealth - I'm sure he has been well paid and has some amount of stock, but it unlikely that he has anything at this order of magnitude - this allows him to be within (long) shouting distance of some of his peers at other major tech players (like Balmer, Ellison, Brin, Page, etc.)

August 27 2011 at 1:06 AM Report abuse rate up rate down Reply
The Bozo

Steve Jobs just finished to write the manual for running Apple the right way!

http://wp.me/p1Mrnd-2L

the Bozo.

August 26 2011 at 6:45 PM Report abuse rate up rate down Reply
Boan Rubalcava

Giminy Christmas!

August 26 2011 at 6:13 PM Report abuse rate up rate down Reply
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