Today is the fifth anniversary of when late Apple co-founder Steve Jobs stepped down as chief executive officer of Apple. That same day, Tim Cook was named CEO of the Cupertino firm.
Part of Cook’s deal in becoming CEO of Apple included an award package that includes stock bonuses that are now worth $100 million. The package became unlocked today as Tim Cook reached his five year anniversary. The package was tied to tenure, and Apple’s performance under his reign, including the company’s total shareholder return relative to the S&P 500 index.
Cook’s bonus includes 700,000 tenure-based restricted stock units that vested today as part of a larger compensation package of over 4.7 million shares awarded on August 24, 2011, in addition to his first of six annual installments of 280,000 tenure-based restricted stock units that vested today. The combined 980,000 shares are valued at nearly $106.7 million based on AAPL’s closing price of $108.85 on Tuesday.
Cook’s bonus could proved to be worth more than $5 million, if Apple’s total shareholder return proves to be in the top two thirds relative to other S&P 500 firms from August 25, 2013 through August 24, 2016. He would receive an extra 140,000 RSUs for a middle third performance, or 280,000 RSUs for a top third performance. AAPL stock has risen over 50% since August 25,2013, compared to the S&P 500 rising around 32% in the same period, making it quite possible Mr. Cook will receive at least another 140,000 RSUs.
During Tim Cook’s time at the helm of Apple, the company has launched the Apple Watch, MacBook Pro with Retina display, the 12-inch MacBook, the iPad Pro, and five generations of iPhones and iPads.
