ComputerWorld noted that Apple’s SEC filing on Friday revealed that Tim Cook lost out on $4M worth of stock as a result of his request to the board in August to revise his compensation arrangements to a deal he felt was fairer to shareholders.
Earlier this year Apple’s board revised Cook’s vesting schedule at his urging. Rather than the two monster stock handouts — which only relied on his continued employment — Cook asked that they be spread out over a 10-year period and tied to the company’s stock performance …
Under the revised deal, a large slice of the stock payout Cook would receive depended on APPL being in the top third of the S&P 500 company index – a target the company didn’t achieve. Cook thus forfeited 7,123 shares which would have been worth $3.6 million in late August, when they were due to be awarded, and which would be worth $4M by now.
While requesting the index-linked arrangement was a noble move on Cook’s part, he isn’t likely to be applying for welfare anytime soon: he still received a total of $4.25M this year in compensation, and the remaining shares that did vest were worth $40.8M as of Friday.