Roger Fingas
Apple CEO Tim Cook could potentially collect his maximum 2017 performance award — 280,000 shares — if the company's current stock performance holds through an Aug. 24 deadline.
The company's shareholder return over three years will need beat two-thirds of the companies in the S&P 500, Bloomberg noted on Wednesday. Cook will receive 140,000 shares if Apple lands in the middle third, and none at all if it places in the bottom tier. Critically, the calculation depends on average prices in the 20 trading days before the start and end of the three years.
Apple's stock has soared in Wednesday trading as a result of strong Q3 results. At the end of Tuesday, the company sat below $150 — as of this writing, it's over $158, and at one point on Wednesday it was poised to hit $160.
Many Apple executives have received stock incentives as motivation to stay with the company and keep profits high. These include people like COO Jeff Williams, marketing head Phil Schiller, and retail leader Angela Ahrendts.
If Cook were to receive 280,000 shares at their current price, they would be worth about $44 million.
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5 Comments
He's making bank, that's for sure.
Dang 44 Million...I bet you can do a lot with that kind of money. Anyway, he earned it and he is a good guy. Good Job Tim! :)
I don't agree with all of Tim cooks choices.
But it one thing is for sure: the man had earned his due. He's been outperforming since he became CEO. consistently beating back cutthroat challengers and refining Apple to a razor edge.
Apple products are better than ever and fit a more diverse group of needs than ever.
He shouod get get his bonus whether or not the fickle stock holds.
Those $44 million (at the current share price) worth of performance-based shares would almost cover the tax withholding for the $44 million (at the current share price) worth of time-based shares that he'll receive at the same time.
OK I was waiting for either 'nice dresses Tim. ... or ... so that's why he has to have Apple buy back so many shares ... it's so he can give them to himself and his executives' ... where are the AI comedians these days?
Seriously though, as others have said, he deserves every penny. Having bought a lot of AAPL at between $30 and $70 pre split eons ago we love Tim to bits!