The Board of Apple has granted their Chief Executive Tim Cook 333,987 restricted stock units, having a possibility to make as many as 667,974 more if he strikes performance goals, in the executive’s initial stock grant since 2011.
“Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity,” Apple’s board of directors said in a statement.
“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.”
Cook is in the ninth year of his 10-year grant from 2011. Each restricted stock unit communicates the right to a common share when it vests.
Apple’s stock closed at $114.09 on Tuesday, which places the value of the units at $38.1 million at Tuesday’s price. But they’ll be valuable if Apple’s stock price rises by the time they vest. One-third of those units will vest on April 1, 2023 with another third vesting in 2024 and the final third in 2025.
In October 2023, Mr Cook will also be eligible to receive additional components based on functionality. The target total is 333,987 units, but the total could vary between none and double that sum according to Apple’s relative total shareholder return from fiscal years 2021 via 2023, according to a regulatory filing.
Apple’s move brings Cook’s reparation timeline into line with other executives in the company. Apple on Tuesday also awarded a similar grant to Chief Operating Office Jeff Williams, who will receive 89,064 restricted stock units on the very same conditions as Cook, including the possibility of performance-based units.
Cook told Fortune magazine in 2015 that he intends to contribute his wealth to charity.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Stephen Nellis in San Francisco. Editing by Leslie Adler and Cynthia Osterman.
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