Tim Cook reaps $89.2 million stock award as Apple outshines S&P
New York: Apple Inc. chief executive officer Tim Cook collected 560,000 shares, half of them linked to the company’s performance and the maximum allowed under the iPhone maker’s long-term compensation program.
The award was worth $89.2 million when it was granted on Thursday, based on Apple’s $159.27 closing price. He received the performance-linked stock because Apple shares outperformed at least two-thirds of businesses in the S&P 500 Index over three years, according to a regulatory filing Monday. It’s Cook’s fourth consecutive payout at the top threshold.
Cook, 56, receives annual payouts from a giant stock award he got after succeeding Steve Jobs in 2011, which was set to vest in two phases over a decade. In 2013, at Cook’s request, the board’s compensation committee tied about a third of those shares to Apple’s relative stock performance versus the S&P 500.
For the three years ended 24 August, Apple shares returned 71%, ranking it in the 81st percentile among index members, according to the filing. The rest of the award will vest as long as he remains on the job.
Earlier this month, Apple shares surged to a record after the company reported a fiscal third-quarter profit that beat Wall Street estimates and boosted its revenue outlook for the year, forecasting strong iPhone sales.
Cook said in 2015 that he plans to give most of his fortune to charity. Bloomberg
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