Apple CEO Tim Cook was this week awarded 667,974 restricted inventory models or RSUs price greater than $76 million at Apple’s present worth, in line with a filing with the SEC. The primary half of the RSUs are set to vest in one-third increments in 2023, 2024, and 2025, so Prepare dinner will obtain 111,329 shares each April beginning in 2023.
The second half of the RSUs are performance-based awards and can vest on October 1, 2023, based mostly on Apple’s relative shareholder return. Prepare dinner can probably obtain as much as 200% of the 333,987 RSUs awarded for efficiency.
These performance-based restricted inventory models are scheduled to vest on October 1, 2023. The “goal” variety of restricted inventory models is reported. Between 0% and 200% of the goal variety of models might vest based mostly on Apple’s relative whole shareholder return from the primary day of Apple’s fiscal 2021 and ending with the final day of Apple’s fiscal 2023.
Paired with the time-based inventory awards, Prepare dinner can earn as much as 1,001,961 shares price greater than $114 million right this moment if Apple’s efficiency within the S&P 500 is within the eighty fifth percentile or increased relative to different firms.
That is the primary inventory grant that Prepare dinner has acquired since 2011, with the final of that grant set to vest in 2021. As famous by Reuters‘ Stephen Nellis, Apple’s board of administrators issued a press release on Prepare dinner’s RSU award:
Tim has introduced unparalleled innovation and focus to his position as CEO and demonstrated what it means to guide with values and integrity. For the primary time in almost a decade, we’re awarding Tim a brand new inventory grant that may vest over time in recognition of his excellent management and with nice optimism for Apple’s future as he carries these efforts ahead.
A number of staff on Apple’s govt group have additionally acquired inventory awards, together with Luca Maestri, Deirdre O’Brien, and Jeff Williams, all of whom have been awarded 178,128 shares. As with Prepare dinner’s award, half of those RSUs will vest between 2023 and 2025, whereas the remaining are efficiency based mostly awards.
The RSUs function bonus compensation for Prepare dinner and Apple’s executives, and can encourage staff to stick with the corporate by a minimum of 2025, which is when every part might be absolutely vested. Prepare dinner has been Apple’s CEO since August 2011, and there was some hypothesis recently on how lengthy he’ll proceed to work for Apple. Prepare dinner in a recent interview stated that he cannot envision his life not working at Apple.
I think about it the privilege of a lifetime to be right here on this position right now. I really like working with this group. I think about them household. It is arduous to elucidate. It could sound like messaging or one thing, but it surely’s not. It is that deep in my coronary heart, I actually love the individuals I work with and at present it is robust to ascertain my life with out that. So we’ll see. In some unspecified time in the future, in fact, all of us do one thing completely different, however in the mean time, there is not any place I might slightly be than proper right here.
When Prepare dinner does choose to retire in some unspecified time in the future sooner or later, Apple Chief Working Officer Jeff Williams might assume the role of CEO, in line with a current Bloomberg report. Williams is “primed” to take over for Prepare dinner if mandatory and regarded the “inheritor obvious” inside Apple.