Apple CEO declines $75 million payout in stock dividends

By on May 28, 2012, 6:00 PM

Apple chief Tim Cook has elected to forego a $75 million payout in restricted stock dividends owed to him. The company announced plans late last week that would pay a $2.65 per share dividend on restricted stocks held by Apple employees. It’s rare for a company to reward employee stockholders in this fashion and even more uncommon for a high level executive to walk away from money they are entitled to.

All Things D points out that the decision to turn down the money could actually benefit the company and his wallet in the long run. The move will no doubt shine a positive light on Apple and Cook which could ultimately translate to more stocks sold. It also goes a long way to showcase the kind of person that Cook is amidst the perception that all executives are greedy and have a sense of entitlement.

After all, it’s not as if the CEO is hurting for money. Cook reportedly earned $58 million in 2010 with a base salary of $800,000, a $5 million bonus and $52 million in stock for fulfilling CEO duties while Steve Jobs was away due to health reasons in 2009.

Apple offered him 1 million restricted shares of company stock in August 2011 in order to retain his services through 2021. The shares were split into two 500,000 bundles that vest in 2016 and 2021. Based on current stock prices, this equates to $562 million but with some analysts expecting Apple shares to surpass $1,000 in the not-so-distant future, he stands to earn quite a bit more in the coming years.




User Comments: 14

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Guest said:

"Momma says that there is only so much fortune a man really needs, and the rest is just for showing off."

Recipe7 Recipe7 said:

Momma lives under a rock.

m4a4 m4a4 said:

I don't think I can call apple a brand/fashion symbol anymore... more like a blind religion all in itself

cliffordcooley cliffordcooley, TechSpot Paladin, said:

"Momma says that there is only so much fortune a man really needs, and the rest is just for showing off."
Momma lives under a rock.

Needs and desires are two different things. I wonder where one would draw a line between needs and desires. I also wonder why you would interpret, living within ones needs as living under a rock. Welcome to the lowest level of greed, the chance to show off one no longer lives under a rock while pointing a finger at those who are content to live under a rock.

gwailo247, TechSpot Chancellor, said:

If I made 58,000 a year, turning away 75,000 would be a huge deal.

If I made 58,000,000, well, what can 75,000,000 buy you that 58,000,000 can't?

Realistically, for a person like Cook?

fimbles fimbles said:

How about passing on the savings to the customers...

Guest said:

Tim Cook still remembers the ethics class from business school. The executives of all American companies needs to follow Cook's example. A good leader must lead by example!

I am proud to be an Apple share holder and customer.

gwailo247, TechSpot Chancellor, said:

<p>How about passing on the savings to the customers...</p>

I think the post below yours explains why that will never happen.

"Thank you sir, may I have another?"

MilwaukeeMike said:

The move will no doubt shine a positive light on Apple and Cook which could ultimately translate to more stocks sold. It also goes a long way to showcase the kind of person that Cook is amidst the perception that all executives are greedy and have a sense of entitlement.

You don't 'sell more stocks' you hope the price of your stock goes up. And ALL executives are greedy? That's quite the ignorant stereotype.

<p>If I made 58,000 a year, turning away 75,000 would be a huge deal.</p>

<p> </p>

<p>If I made 58,000,000, well, what can 75,000,000 buy you that 58,000,000 can't? </p>

<p>Realistically, for a person like Cook?</p>

He didn't earn 58 million, his stock's value went up by 58 million. He won't have any cash (or pay any tax) from it unless he sold it. This 75 million dividend was cash.

Guest said:

m4a4, "I don't think I can call apple a brand/fashion symbol anymore... more like a blind religion all in itself"

Name a better tablet than the iPad 3? iPhone 4S is for sure outdated today because of it's 3.5 inch screen but when iPhone 5 comes out, Apple will be a pretty good option. Now I am not saying that it's the best phone on the market, since I still enjoy customizing my Android OS. However, iPhone has FAR greater resale value. You can trade in the iPhone 4S today still for > $200 at Amazon. My Samsung Galaxy phone is worth nothing. So the total cost of ownership is actually cheaper in US for an iPhone than a similar Android phone.

MacBook Air really doesn't have any good windows competitors. The only laptops that even comes close is the Asus UX21/31 series:

[link]

But again, that Windows laptop will have much worse resale value and likely worse battery life than the IVB based MacBook Air since OSX is more efficient for battery use than Windows 7 is (Proven by many websites when MBA's battery life is tested under OSX or clean Windows 7 install).

While I could care less about iMacs, again it has no competition on the PC space (nothing worth speaking about).

The only 2 products that are vastly overpriced right now are MacBook Pros and the tower Macs. The MacBook Pros are going to get the highest resolution displays and get slimmer in July.

Then there is the fact that almost every premium German luxury car has iPhone integration.

I personally think iPad and iPhone are not overpriced at all since the first is simply the best tablet on the market while the latter will regain its competitiveness quickly with iPhone 5.

Guest said:

^ quite the fanboy here.

German premium cars? Is that even an argument? A ton of cars come with that perk, not to mention something as basic as Bluetooth is much better and transversal.

But I always come to the point of "Best". Is there any tablet better than the iPad 3. What is "best"? What are we talking about here? Maybe best is weight, autonomy, price, interface, customization, looks... There's so much thing that I cannot put the label of "best" in one product. Unless you say Apple's products are "better" in ALL categories, which I will obviously reject...

gwailo247, TechSpot Chancellor, said:

<p>
The move will no doubt shine a positive light on Apple and Cook which could ultimately translate to more stocks sold. It also goes a long way to showcase the kind of person that Cook is amidst the perception that all executives are greedy and have a sense of entitlement.
</p>

<p><br /></p>

<p>You don't 'sell more stocks' you hope the price of your stock goes up. And ALL executives are greedy? That's quite the ignorant stereotype.</p>

<p><br /></p>

<p>

<p>If I made 58,000 a year, turning away 75,000 would be a huge deal.</p></p>

<p><p> </p></p>

<p><p>If I made 58,000,000, well, what can 75,000,000 buy you that 58,000,000 can't? </p></p>

<p><p>Realistically, for a person like Cook?</p>

</p>

<p><br /></p>

<p>He didn't earn 58 million, his stock's value went up by 58 million. He won't have any cash (or pay any tax) from it unless he sold it. This 75 million dividend was cash.</p>

Why don't you read the article again, the correct me.

Guest said:

Apple is the best computer company going right now (obviously) and the whole industry owes a ton to them. So much jealous low-minded cynicism really reflects poorly on Tech Spot users.

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