Tim Cook reaps $89.6M wind­fall from long-term deal

Miami Herald - - FRONT PAGE -

SAN FRAN­CISCO — (AP) — Ap­ple chief ex­ec­u­tive Tim Cook has col­lected $89.6 mil­lion as part of a 10-year deal that he signed as an in­cen­tive to keep the iPhone maker at the fore­front of the tech­nol­ogy in­dus­try af­ter he took over the reins in 2011 from com­pany co­founder Steve Jobs.

The wind­fall de­tailed in a Mon­day reg­u­la­tory flowed from 560,000 Ap­ple shares sold dur­ing the past week.

Cook re­ceived half the award be­cause Ap­ple’s stock de­liv­ered share­holder re­turns in the top third of the Stan­dard & Poor’s 500 in­dex dur­ing the past three years. He got the other 280,000 shares for sim­ply stay­ing on the job.

Ap­ple set aside more than 291,000 shares sold for $46.4 mil­lion to cover Cook’s tax bill.

The stock pack­age awarded to Cook in 2011 was orig­i­nally val­ued at $376 mil­lion, but is now worth much more be­cause Ap­ple shares have in­creased by six-fold since he signed the deal.

Cook is still in line to re­ceive 2.94 mil­lion shares of Ap­ple stock cur­rently val­ued at $479 mil­lion, based on Tuesday’s clos­ing price of $162.91. The as­cent has es­tab­lished Ap­ple as the world’s most valu­able com­pany, thanks largely to the en­dur­ing pop­u­lar­ity of the iPhone in­tro­duced 10 years ago un­der Jobs’ lead­er­ship.

As long as he re­mains chief ex­ec­u­tive, Cook will re­ceive 560,000 shares of stock an­nu­ally from Au­gust 2018 through Au­gust 2020. He will then get 1.26 mil­lion shares in Au­gust 2021 as the fi­nal pay­ment un­der his orig­i­nal chief ex­ec­u­tive con­tract.

Cook told For­tune mag­a­zine in 2015 that he in­tends to give away most of the for­tune that he makes at Ap­ple.

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