Apple wants its new C.E.O. to be fully invested in the success of the company. To ensure this, the company is promising a lot of future shares to Tim Cook.
An 8-K form is a form that companies have to file with the S.E.C. in order to notify shareholders of major company decisions. With Steve Jobs resigning and Tim Cook taking over, filling out an 8-K was necessary. The form Apple recently submitted covered the resignation of Steve Jobs, his being appointed chairman of the board, the former C.O.O. Tim Cook’s promotion to the C.E.O. of Apple, as well as the appointment of Tim Cook to the Apple board.
With his promotion, everybody expected Tim Cook to be making more money. Last year he made $58 million including his salary, stock awards, bonuses, etc. Now he can look forward to being richer in the future, especially after he has been promised company shares in the future.
This was also mentioned in the 8-K form. The exact words were:
“In connection with Mr. Cook’s appointment as Chief Executive Officer, the Board awarded Mr. Cook 1,000,000 restricted stock units. Fifty percent of the restricted stock units are scheduled to vest on each of August 24, 2016 and August 24, 2021, subject to Mr. Cook’s continued employment with Apple through each such date.”
Currently these stocks are valued at $383 million. But the way Apple is going the value will definitely be higher in the future. In other words when Tim Cook is awarded 500,000 shares of Apple stock in 2016 and 500,000 more shares in 2021, he will be far richer man than he presently is.
The only condition of the delivery of shares is that he stays employed at Apple at the time. For his sake and for the progress of Apple, we hope that he does.Other Interesting Stuff