Photo: mashable.com

Photo: mashable.com

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.

Via arsTechnica

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10 Responses to “Tim Cook’s revised stock deal cost him $4M this year”

  1. davidgoscinny says:

    I remember when the Nintendo CEO (Iwata) cut his salary in half after a bad year for Nintendo. The media makes so much noise about CEOs with outrageous pays & golden parachutes (with every right to do so) but should also take a look at those that actually take responsibilities when things don’t go too well.

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  2. He’s still been made fabulously wealthy by the company, but it’s nice to see a CEO like this every once in a while; actually taking some responsibility for the company’s financial performance.

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  3. This is admirable, but not as good as Steve Jobs’ $1 salary man.

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  4. Ben Lovejoy says:

    Yes, it’s certainly very refreshing

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  5. drtyrell969 says:

    Just knowing that the board expects Cook on for 10 years should drive the stock down by HALF. It’s over folks.

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