Apple Inc said it is giving Chief Executive Officer, Tim Cook new equity awards that could provide him with as many as 1 million shares by 2025. Cook will get 333,987 units of restricted stock that will vest in thirds on an annual basis starting in 2023.
The stock grant suggests that Cook’s performance over the past decade is viewed highly by the tech giant’s board, which wants to make sure that he will be compensated competitively through 2025 if he continues to be the CEO of Apple.
The tech company’s shares have flourished in recent years as Cook helped the company produce new iPads, iPhones, Apple Watch Series 6 and Series SE, AirPods, and digital services during a global pandemic. The CEO also became a billionaire earlier this year.
Apple CEO, Tim Cook receives first major stock grant since 2011
The company’s board of directors recently issued a statement regarding the award, praising the enormous success Apple has experienced since Cook took on the CEO role at the company:
“Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity. For the first time in nearly a decade, we are awarding Tim a new stock grant that will vest over time in recognition of his outstanding leadership and with great optimism for Apple’s future as he carries these efforts forward.”
The equity comes in two packages, according to a regulatory filing on Tuesday. The first comprises 333,987 restricted stock units that vest in thirds on April 1st in 2023, 2024, and 2025. The other has 333,987 units that will vest October 1st, 2023, and is based on Apple’s relative share performance over three years. Cook may get none of this award or 200 percent, depending on stock returns. If the company performs well throughout the three years, Cook may get about 1 million shares in total.
this is the first stock grant that Cook has received from Apple since 2011. The last of that grant will completely vest in 2021, which explains why this new one will vest in 2023 through 2025.
Cook was not the only Apple executive to receive stock awards this time around. The company’s Chief Operating Officer Jeff Williams, Chief Financial Officer Luca Maestri, and General Counsel Kate Adams were also granted new equity awards on the same time schedule and terms as Cook. However, the other executives received smaller packages.