Earlier this year it was reported that Tim Cook’s 2016 pay was cut by $1.5M as Apple missed its revenue and profit goals. Today, Bloomberg reports that Cook’s yearly performance award window is about to close later this month and 280,000 AAPL shares are on the line…
Cook’s performance review window officially closes on August 24th and up until yesterday, it was looking like he would only receive half of the 280,000 shares. However, with yesterday’s strong Q3 results and positive outlook for Q4 and the resulting AAPL share price jump, it’s looking like Cook may receive the full 280,000 shares after all. At a share price of about $158, the full award is worth about $44 million and makes his 2016 pay cut seem insignificant.
Here’s the criteria for the performance award:
Cook, 56, will collect 280,000 shares on Aug. 24 if total shareholder return over three years beats at least two-thirds of the companies in the S&P 500. If Apple falls in the middle third of index members he gets half that amount, and none if it lands in the bottom third.
The final calculation will be based on the average prices in the 20 trading days before the start and end of the three-year performance period.
Before the after-hours AAPL spike and record high as the Nasdaq market opened this morning, AAPL’s shareholder returns were in the middle third of the S&P 500. However, with the 5-6% boost that AAPL shares will likely see by the end of the day, Cook has a good shot at earning the full award. Previously, Cook has earned the full 280,000 bonus shares for the last three years.