Apple CEO Tim Cook Sells $36 Million From Block of Compensation Stock
August 26 2016 - 8:20PM
Dow Jones News
By Robert McMillan
Apple Inc. Chief Executive Tim Cook this week reaped the biggest
chunk so far of the mega-stock grant he received when was named CEO
in 2011.
In a Securities and Exchange Commission filing on Friday, Mr.
Cook said he had received 1.26 million shares of Apple stock,
valued around $135 million, that previously were restricted. He now
has hit the halfway point of a stock-compensation plan that could
see him awarded seven million shares by 2021.
Mr. Cook earned the bulk of the shares -- 980,000 -- by
remaining CEO for five years. He earned the additional 280,000
shares because Apple stock outperformed more than two-thirds of the
companies in the S&P 500-stock index over the past three
years.
According to the filing, Mr. Cook sold $36 million worth of this
stock, and forfeited another $71 million to cover taxes. He is
holding the remaining shares.
The bulk of Mr. Cook's compensation comes from this plan. In the
fiscal year ended September 2015, he was paid $10 million in salary
and bonus, but received no additional grants of stock or stock
options.
When he took over as Apple's chief executive in 2011, Mr. Cook
was given one million restricted stock units -- now equal to seven
million, following Apple's 2014 7-for-1 stock split. Under the
initial grant, half of those shares were to vest this year.
In 2013, Apple amended the plan, allowing some restricted shares
to vest more quickly, but tying about one-third of the shares to
the performance of Apple's shares.
Mr. Cook has hit his performance goals, but Apple has stumbled
lately. Its shares are down almost 20% since their all-time high in
May 2015, amid slowing demand for its smartphones and tablets. In
July, the company reported a 27% drop in quarterly profits as
iPhone sales slumped. The company is expected to introduce new
iPhone designs next month.
Write to Robert McMillan at Robert.Mcmillan@wsj.com
(END) Dow Jones Newswires
August 26, 2016 20:05 ET (00:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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