Bonus season has arrived in a big way for Apple CEO Tim Cook, who received more than five million company shares earlier this week, and selling most of them for US$750 million (AU$1 billion), according to an SEC filing.
The tranche of stock was outlined within the original compensation package offered to Tim Cook when he assumed the role of Chief Executive back in August 24th of 2011; shortly after the resignation and passing of Apple co-founder Steve Jobs.
Essentially, accessing his monstrous reward hinged upon Apple’s performance compared to other firms listed on the S&P 500 (currently ranked 13th out of 442). Given how AAPL has climbed by an impressive 191.83% over the last three years – and an even more impressive 1,200% since taking the reins from Jobs – Cook was eligible to cash in. It also doesn’t hurt the entire operation has been crowned the most profitable company in the world with a market cap fast approaching US$2.5 trillion (AU$3.45 trillion).
The gravy train, as it were, won’t exactly stop here. Last year, a new compensation package was agreed upon, which will take him through to 2026. Mainly comprised of restricted stock units, should Apple performing the way it has on the NASDAQ, Tim Cook will be granted 1,001,961 more AAPL shares (on top of some major $$$).
“Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity,” Apple’s board of directors expressed via statement.
“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.”
But you’d be mistaken in assuming Cook’s windfall was simply pocketed and sold for a mint. Another SEC filing also indicates the man donated close to US$10 million (AU$13.8 million) worth of Apple shares to an unidentified charity. In 2015, Cook revealed he plans to give away his entire fortune before he died, and regularly donates millions upon millions to various philanthropic causes.
“You want to be the pebble in the pond that creates the ripples for change,” Tim Cook previously told Fortune magazine.
According to Forbes, at the time of this writing, Apple CEO Tim Cook has a net worth of US$1.4 billion (AU$1.9 billion); not accounting for his latest payday.