Apple’s stock has more than increased tenfold since Cook became chief executive in 2011, a record that earned him the maximum payout possible as part of the award.
After his remaining restricted stock awards vested on August 24, about 5 million shares were sold at prices between $ 148 and $ 150, or $ 752 million, according to documents released Thursday. Apple shares hit a new all-time high of $ 151.12 earlier this month, as the market cap of the world’s most valuable company approaches a record high of $ 2.5 billion.
Most of the transactions were part of a pre-arranged stock sale plan adopted last August, through a plan commonly used by U.S. business executives to avoid any appearance of insider trading. Just over half of the sales, worth $ 397 million, were withheld by Apple to cover Cook’s tax obligations when the stock options vest.
Cook’s original stock award was estimated at $ 378 million in 2011 when it was first awarded, placing Cook among America’s highest-paid executives at the time. The scheme was amended in mid-2013 to reflect the performance of Apple’s share price relative to other U.S. companies, after about one-third of Apple shareholders filed a protest vote on executive compensation at the company’s annual meeting earlier that year.
Apple said in a filing Thursday that its total return to shareholders – which assumes all dividend payments are reinvested – for the three years through August 24 was 192 percent, ranking Apple 13th in the S&P 500. The Outperforming on that basis, among the companies that remained in the S&P 500 throughout the period, was chipmaker AMD, according to Bloomberg data, whose three-year total shareholder return was close to 350%.
Cook, whose net worth was estimated by Bloomberg to be over $ 1 billion for the first time last August, said in 2015 that he planned to give up the majority of his fortune before he died. He donated just over $ 10 million in Apple shares to charity a week ago.
Last September, Cook, who earns an annual salary of $ 3 million, received his first new RSU award since his promotion in 2011. The share award, which will vest after April 2023 and depends in part on total shareholder return, could be worth nearly $ 150 million at today’s share price, if Apple hits the peak of its targets by 2025.
In January, Apple announced it would add an “environmental, social and governance modifier” to its executive annual bonus programs, allowing the board to vary the cash payment by 10% based on an assessment of “leadership. values-driven ”.
Additional reporting by Adam Samson