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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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.
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.
Apple’s making money hand over fist and he’s “taking responsibility for its performance” by taking a pay… cut?
This is admirable, but not as good as Steve Jobs’ $1 salary man.
You mean the $1 salary that Tim Cook also has?
What? Tim Cook’s salary is $1.4M, not $1.
Yes, it’s certainly very refreshing
Once it makes the Shareholders happy. It’s OK
Just knowing that the board expects Cook on for 10 years should drive the stock down by HALF. It’s over folks.
Keep dreaming, troll. Apple is here to stay.