Apple CEO Tim Cook turns down Restricted Stock Unit dividend worth over $75 million

Apple CEO Tim Cook turns down Restricted Stock Unit dividend worth over $75 million
Remember when Apple was deciding what to do with their Scrooge McDuckian bundle of cash? You might remember that they decided to pay a quarterly dividend of $2.65 per share. That, of course, will benefit all of those public stockholders whom own the shares (along with those multi-billion dollar Hedge Funds sitting on the stock). Thanks to a decision from Apple's board, the company decided that it would pay the same $2.65 dividend to holders of its Restricted Stock Units. This decision appears to have been done quietly and with good reason. Most owners of the Restricted Stock Units are employees whose holdings vest over a period of time in order to give the them an incentive to stay with the company.

While there is nothing illegal with Apple's actions, some might find it another way that the rich get richer, considering that these RSU's are usually found in the hands of highly-paid employees. That is why we have to give kudos to Apple CEO Tim Cook who has decided to 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.source: SEC via AppleInsider


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