With one year left in his term, apple spent $100 million golden handcuffs to keep cook!

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 With one year left in his term, apple spent $100 million golden handcuffs to keep cook!


On September 30, according to several foreign media reports, cook and his core management team received the companys grant of restricted stock units (RSUs) this week to encourage Apples management to continue working in the company until 2025.

The restricted shares, which are divided into tenure RSU and performance RSU, will be issued over the next five years, according to a September 29 SEC filing, CNBC reported.

Cook has obtained 333987 tenure RSUs. If Apples performance is good in the future, cook can also obtain 667974 performance RSUs.

At Apples latest closing price of $115.81, these 1001961 shares are worth more than $116 million.

Photo source: Dongfang fortune.com

Cooks new equity incentive

According to CNBC, Apple CEO Tim Cook received a second equity incentive after the first 10-year equity incentive expired. According to Apples filing with the SEC on September 29, us time, cook will be able to obtain up to 1001961 restricted stock units (RSUs) by 2025. At the closing price on Tuesday, the maximum value of the equity incentive is about $114 million.

The equity incentive plan consists of two parts. The first part, 333978 shares, is a term RSU, which is not linked to Apples performance. As long as cook stays in office until 2025, this part of the shares will be issued in three equal shares in 2023, 2024 and 2025.

The second part of the stock is linked to the companys shareholders earnings. Cook can obtain a maximum of 667974 RSUs and a minimum of 0 shares. According to Reuters, if Apples stock returns are better than 85% in the S & P 500 index, the RSU will be issued to cook on October 1, 2023.

Photo source: Photo by Zhang Jian

As for cooks incentive instrument, restricted stock unit (RSU) is a special incentive tool. Although its name is similar to that of restricted stock, it is more similar in terms of contribution and exercise. Restricted stock unit is a kind of promise to the incentive object to grant stock in a certain period in the future. If the incentive object meets the service term or performance conditions stipulated in the equity incentive plan, it can obtain a certain number of shares. Compared with the traditional restricted stock, its grant is only a conceptual grant. Only when the incentive object completes the incentive conditions, the stock will be transferred to the incentive object. At the time of vesting, options have the right to buy stocks at a certain price, while restricted stock units can obtain shares and equity directly. Restricted stock unit (RSU) has not been used in a shares at present.

According to China Fund News, the restricted stock unit (RSU) was only used as equity incentive reward for Apples top management and special departments such as technical engineering department. In 2015, cook announced that everyone who works for apple is eligible for RSU. The restricted stock unit (RSU) will cover all employees who were not eligible for Apple stock before, and all of them performed well Different retail clerks and the AppleCare team are entitled to restricted stock units (RSUs). So this year, in addition to cook, several Apple executives, including cfoluca Maestri, Deirdre OBrien, senior vice president of retail and human resources, and coo Jeff Williams also received stock awards.

In August last year, because Apple met the performance expectations, Apple CEO cooks restricted stock was unlocked and obtained 560000 shares of apple stock through restricted stock unit (RSU). Half of Cooks equity incentive at that time (280000 shares) was fixed and could be obtained after the expiration of his term of office; the other half was related to the performance of apple and other S & P 500 index companies Apple has returned more than two-thirds of the S & P 500 companies in the past three years, leaving the remaining 280000 shares to be unlocked. According to Apples total shareholder return (TSR), during the three-year period from August 25, 2016 to August 24, 2019, Apples performance achieved the target relative to other companies in the S & P 500 index. As a result, cooks restricted shares were fully owned at that time.

Cook may remain in office until at least 2025

It is reported that 2020 is cooks tenth year as CEO of apple, and his contract will expire in August next year. A few days ago, when asked in an interview about how long he would stay at Apple, Cook said that he enjoyed working with his team colleagues and would do different things at some time, but now he just wanted to stay here.

On August 25, 2011, Apples board of directors announced the appointment of Tim Cook as Apples CEO. During cooks tenure, Apples share price went up. According to data, Apples market value was less than $400 billion when it first took office. Now, its market value has reached $1.95 trillion, and its market value has exceeded $2 trillion many times, creating the history of Wall Street.

Obviously, cook was given more than one million shares of apple stock, representing that the Apple board of directors was very satisfied with cooks work. They said: cook brought unparalleled innovation and concentration during his tenure as CEO, and demonstrated the significance of leading with values and integrity. For the first time in nearly 10 years, we granted cook a new stock grant in recognition of his outstanding leadership.

I cant imagine my life without working at Apple, Cook said in a recent interview. Of course, at some times, we all do some different times, but right now, I just want to stay here.

When asked whether he would retire after success next year, cook responded that he would not leave in the near future. ,

Cooks CEO will expire in 2021, but given that cook is only 60 years old and has received such a high equity incentive, many people who are concerned about Apples dynamics speculate that cook will remain CEO of apple until at least 2025.

Photo source: visual China

But at the same time, there is constant speculation that if cook leaves office one day, then Apples chief operating officer (COO) Jeff Williams is the most likely CEO.

After all, cook is also from coo to CEO, and Jeff Williams is also known as cooks cook. The external evaluation of him is pragmatic, low-key and outstanding.

According to public information, cook was born in Alabama on November 1, 1960. At the beginning of 1998, cook joined apple as vice president and was in charge of Apples computer manufacturing business. He took over as CEO of apple in 2011. It was also the year Apple CEO Tim Cook became the most paid CEO in the United States. On August 11, 2020, cook was worth more than $1 billion.

In the ten years since cook took office as CEO, Apple has been criticized by netizens for squeezing toothpaste. However, what can not be ignored is that he created another heavyweight product of apple after iPhone 4: iPhone 6. At the press conference at that time, cook once said, today we launched the heaviest update in the history of iPhone, and the subsequent facts also proved that the iPhone 6 / 6S series has become the largest in the history of apple The best-selling model, since then the iPhone 7 / 8 series also used a large number of iPhone 6 design.

In addition to the iPhone, during his tenure, cook promoted the popularity of iPad, created airpods, the leader in the TWS headset market, and launched the globally popular smart watch applewatch.

In addition, this year, Apple also announced that it would gradually get rid of Intel in its MacBook products and carry Apple self-developed chips based on ARM architecture. This is undoubtedly an important puzzle for cook to integrate the entire apple product ecology.