Apple CEO Tim Cook receives $750m bonus
Updated
Tim Cook’s 10th anniversary this week as Apple CEO came with a big bonus.
Cook received a $750m bonus tied to the anniversary and the company’s performance, according to a company regulatory filing made with the US Securities and Exchange Commission (SEC) on Thursday 26 August.
He sold more than five million shares after keeping Apple – the world’s most valuable company – within the top third of the S&P 500 index over a three-year period between August 2018 and August 2021.
Firm has $2.4trn market cap
According to the regulatory filing, Apple ranked 13th among the 442 companies that stayed in the S&P 500 during the entire period. The company has a market cap of $2.4trn. It became the world’s first $2trn company in 2020 after surpassing $1trn in value in 2018.
Cook has been at Apple’s helm since August 2011, since he replaced co-founder Steve Jobs, who died later that year from pancreatic cancer. He is considered more reserved than the charismatic Jobs. Cook has also been criticised for being a caretaker rather than an innovator, choosing to focus on Apple’s core computer and phone products instead of investing in many new ventures.
Cook has had to deal with legal and regulatory issues. Apple paid $500m to settle a class-action lawsuit after it deliberately slowed the performance of older iPhones through a software update in 2017.
The company also battled the Federal Bureau of Investigation over privacy issues and faced a court case with the federal government over efforts to minimise its corporate taxes. The court cleared Apple in July 2020.
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Bonus tied to time, 192% shareholder return
According to the regulatory filing submitted by lawyer Sam Whittington, Apple generated shareholder returns of about 192% during the three-year period tied to Cook’s performance bonus. Apple’s share price roughly tripled during that time, rising to $152.56 from $52.58.
The bonus included 3.92 million time-based restricted shares, stemming from Cook’s appointment as CEO on 24 August 2011, and 1.12 million performance-based restricted stock units.
Cook sold the shares in a series of transactions at prices ranging from $147.80 per share to $150.32 per share.
The bonus came after he donated $10m to an undisclosed charity, according to a separate SEC regulatory filing submitted Tuesday 24 August.
Now a billionaire, Cook has pledged to donate most of his wealth to charity. He joined Apple in the late 1990s after holding executive posts at Compaq and IBM.
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