Apple CEO Tim Cook was this week awarded 667,974 restricted stock units or RSUs worth more than $ 76 million at Apple’s current price, according to a filing with the SEC. The first half of the RSUs are set to be taken up in a third step in 2023, 2024 and 2025, so Cook will receive 111,329 shares every April from 2023 onwards.
The second half of RSU is performance-based pricing and will be recorded on October 1, 2023, based on Apple’s relative shareholder return. Cook can potentially receive up to 200% of the 333,987 RSUs awarded for performance.
These performance-based restricted equity units are scheduled to be admitted on October 1, 2023. The “target” number of restricted equity units has been reported. Between 0% and 200% of the target number of units can earn based on Apple’s relative total shareholder return from the first day of Apple’s 2021 accounting and ending with the last day of Apple’s 2023 accounting.
Paired with time-based stock prices, Cook can earn up to 1001,961 shares worth more than $ 114 million today if Apple’s performance in the S&P 500 is in the 85th percentile or higher compared to other companies.
This is the first share grant that Cook has received since 2011, with the last of the grant to be taken up in 2021.
Several employees in Apple’s management team have also received share prices, including Luca Maestri, Deirdre O’Brien and Jeff Williams, who have all received 178,128 shares. As with Cook’s award, half of these RSUs will have vests between 2023 and 2025, while the rest are performance-based awards.
The RSUs serve as bonus compensation for Cook and Apple executives, and will encourage employees to stay with the company through at least 2025, which is when everything will be full.