Apple CEO Tim Cook turns down Restricted Stock Unit dividend worth over $75 million
forgo receiving the $2.65 a share on his 1.15 million RSU's over the vesting period. Cook received 1 million of these highly valuable units back in 2011 when he was named CEO. At the time, the value of that bonus was $383 million. Half of the units vest in five years with the remaining half vesting in ten years.
No one suggests that we need to throw a bake sale for Mr. Cook. After all, earlier this month the executive sold 37,500 Restricted Stock Units that he received two years ago when named interim CEO, and received $11.1 million in the transaction. Still, the amount of money that he is turning down is a whopping $75 million. While we don't know the exact reason for his decision, perhaps he too feels that Apple's decision to award the common stock dividend to holder's of the Restricted Stock Units is merely making the fat cats fatter.
The Committee determined these amendments were appropriate in light of the Company's announcement on March 19, 2012 that it intends to commence paying ordinary cash dividends of $2.65 per share to its shareholders on a quarterly basis sometime during the fourth quarter of its 2012 fiscal year. As restricted stock units are not outstanding shares of common stock and thus would not otherwise be entitled to participate in such dividends, the crediting of dividend equivalents is intended to preserve the equity-based incentives intended by the Company when the awards were granted and to treat the award holders consistently with shareholders.
At Mr. Cook's request, none of his restricted stock units will participate in dividend equivalents. Assuming a quarterly dividend of $2.65 per share over the vesting periods of his 1.125 million outstanding restricted stock units, Mr. Cook will forego approximately $75 million in dividend equivalent value."-from Apple's 8-K filing
1. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Let's see the fandroids twist this one around
6. tedkord (Posts: 3946; Member since: 17 Jun 2009)
There's no need to twist anything. We already knew Mr. Cook was a much less selfish, better human being than his predecessor. Personally, I like the guy.
The only twisting going on here comes from your type. For instance, claiming the review of the One X said it was laggy. Or always using pictures where the Samsung phone is smooshed down to the size an aspect ratio of an iPhone, and opened to its app drawer, then yelling, "See. They're the same!"
The funniest example lately was the pretzel logic Gallito tried to apply to the Apple stylus - Samsung can be accused of copying Apple even though Apple didn't come up with anything they're accused of copying. But Apple can't be accused of copying the Samsung stylus because Samsung didn't come up with the original stylus, which is nothing like the one for the Note.
Seriously, you two should just sit back one day and read all your own past posts. It's good for a laugh, at least, and may be illuminating.
12. TR0LL (banned) (Posts: 41; Member since: 20 May 2012)
Tim could ev bought a company milliards ov
Apple Tv, and conquered 90‰ ov the world
Population, that doesn't own a Apple product......
Instead he takes his self centred-measures to boost
Apples stock price and augment his own $580.000.000 pay package.....
Fire the board!
Start over again....
15. DigitalBoy05 (Posts: 200; Member since: 04 Jun 2011)
Youre just trying to stir the hornets nest. I applaud Cook for his decision.
2. darktranquillity (Posts: 284; Member since: 28 Feb 2012)
Ha ha, apple thought they can fool their CEO like they fool their iphans with overpriced junks:-P.
11. TR0LL (banned) (Posts: 41; Member since: 20 May 2012)
So true. Cheap shattering glass, once dropped it breaks!
Then they charge £45 just to replace it... What a rip off!
7. dejahu (Posts: 35; Member since: 01 Feb 2012)
Looks pretty terrible if the CEO of a company is turning down this kind of offer within the company.
8. remixfa (Posts: 13902; Member since: 19 Dec 2008)
We all know Steve McGreedy Jobs would never have turned it down.. he also never would have payed dividends to outside sources anyways.
I wonder why he turned it down? Is a lil blurb of positive press worth 75 million?
I definitely have "more" positive feelings about Cook that I do of Jobs, but he is still continuing the culture of slave workers, even if he is doing a few nice gestures for his american works.
9. JeffdaBeat (unregistered)
I don't even think the man has been in the position for a year yet. You can change things that dramatically in less time than that. Even Jobs' massive turnaround didn't happen in less than a year. Although I doubt Apple will bring their manufacturing back to the states...I am still hoping we see something...even in the Apple Stores...where people can make a better living from working there.
13. remixfa (Posts: 13902; Member since: 19 Dec 2008)
i was thinking specifically of how Sharp is getting in on the display game with apple.. and how sharp partnered with foxconn to get it done. Thats more apple production workers tied to foxconn that could have been prevented. That was a decision that Cook could have played a part in if he wished. Maybe I'm hoping for a bit much, but if Cook really cared, he would be finding ways to get away from foxconn's practices, not adding more workers to the fold.
14. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Samsung does business with Foxconn how do you feel about that hypocrite?
16. remixfa (Posts: 13902; Member since: 19 Dec 2008)
does samsung make all of their products with foxconn? can you tell me which ones they do? The big name stuff and new tech is all in house.
I love samsung's high end tech, but i know better than to buy their low end stuff. Thats the stuff made by foxconn.
im not a hippocrit, your just a troll without a clue.. or a life.
17. InspectorGadget80 (Posts: 5660; Member since: 26 Mar 2011)
So does Apple you dumb a$$. How do u feel when the Foxconn workers suicide themself making those ipads/iphones. You probably dont care bout them
10. tluv00 (Posts: 134; Member since: 18 Oct 2007)
He turned it down because he really has not earned it IMO. They are still riding the momentum from Jobs and right now Cook needs to really carve out his own book of products under his watch.
Even the iPhone 5 is seen as Jobs last product so until that is launched there really isn't anything that Cook can say he "owns".