Daily Management Review

$750m Payout Awarded To Apple Chief Executive Tim Cook


$750m Payout Awarded To Apple Chief Executive Tim Cook
More than five million shares in the technology giant Apple have been granted to its chief executive Tim Cook as he marks ten years in the job. Cook sold most of the shares for more than $750m, showed a company filing with the US Securities and Exchange Commission (SEC) watchdog.
This is a part of his agreement with Apple which had been struck when he became the CEO after Apple’s co-founder Steve Jobs. The awarding of company stocks is dependent on the performance of the company’s shares compared to how other companies performed on the S&P 500 stock index.
Cook became eligible for the reward following the shares of the company rising by 191.83 per cent in the last three years, according to Apple's filing with the SEC. The filing also noted that the stock price of Apple had risen by more than 1200 per cent since Cook took over as the chief executive of the company on August 24, 2011.
The market value of the maker of the iPhone, iPad and MacBook is almost $2.5 tr9llion.
Cook struck a new pay package with Apple last year which would be applicable till 2026.
Earlier this week, almost $10m worth of Apple shares to charity was donated by Cook to charity, showed the SEC filing. The recipient was however not named. Cook is known to have already donated tens of millions of dollars to charity and he had announced in 2015 that he would donate his entire wealth before he dies. According to the Bloomberg Billionaire's Index, the current net personal wealth of Cook is around $1.5 billion.
Cook has often publicly commented about his concerns over issues including HIV and Aids, climate change, human rights and equality. Cook is among a number of other ultra-rich American business people who have said they would donate all or a large part of their wealth within their own lifetimes.
The Giving Pledge, a call to billionaires to give away at least half of their personal fortunes, was launched by Microsoft co-founder Bill Gates and investment veteran Warren Buffett in 2010.
A chunk of his shares in his company Berkshire Hathaway, worth $4.1 billion was donated to charity earlier this year by Buffett.