Apple's Tim Cook receives stock award worth $282M, sells $132M
Apple CEO Tim Cook this week reaped nearly $132 million after acquiring and immediately selling 560,000 restricted stock units meted out as time- and performance-based awards.
Revealed in a U.S. Securities and Exchange Commission filing on Tuesday, Cook on Monday saw a batch of 560,000 RSUs vest for satisfying performance goals set forth by the company's board of directors.
After Apple's statutory tax withholding, which came out to 294,840 stock units, Cook was left with 265,160 vested units that were immediately sold in multiple trades executed at prices ranging from $493.50 to $500.11 on Monday and Tuesday. Withheld units were traded on Monday at $503.43.
As usual, the trades were made pursuant to Cook's trading plan adopted on Feb. 28.
The fully vested award includes 280,000 time-based RSUs and 280,000 performance-based RSUs. Performance-based RSUs were calculated by monitoring Apple's performance relative to the S&P 500. To receive the full grant, Apple had to land in the top third of firms over a three-year period from Aug. 25, 2017 through Aug. 24, 2020, which it did. Adjusted for dividends, Apple's starting value was calculated at $157.56, with the stock ending the period at $464.63.
Total shareholder return for the three-year period was 194.89%, placing Apple in the 99th percentile and 7th among the 442 companies on the index.
Cook has 1,260,000 RSUs remaining in his current award, all of which are slated to vest on Aug. 24, 2021. To see the RSUs convert in full, the executive must continue employment at Apple and maintain the company's financial health.
Today's filing comes a day after a disclosure noted Cook's donation of 10,715 owned shares to an unknown charity. The gift was worth more than $5 million when the transaction was completed on Friday.