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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17 Comments

1. taco50

Posts: 5506; Member since: Oct 08, 2009

Let's see the fandroids twist this one around

4. Bashok

Posts: 36; Member since: Dec 14, 2010

It's about Apple's CEO...not Apple iPhone.

6. tedkord

Posts: 17410; Member since: Jun 17, 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

Posts: 41; Member since: May 20, 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 Tim! Fire the board! Start over again....

15. DigitalBoy05

Posts: 278; Member since: Jun 04, 2011

Youre just trying to stir the hornets nest. I applaud Cook for his decision.

2. darktranquillity

Posts: 285; Member since: Feb 28, 2012

Ha ha, apple thought they can fool their CEO like they fool their iphans with overpriced junks:-P.

11. TR0LL

Posts: 41; Member since: May 20, 2012

So true. Cheap shattering glass, once dropped it breaks! Then they charge £45 just to replace it... What a rip off!

3. DownHer

Posts: 8; Member since: May 21, 2012

Internal Revenue Service?

5. grif_

Posts: 61; Member since: Apr 28, 2012

thats a loot of money:0

7. dejahu

Posts: 35; Member since: Feb 01, 2012

Looks pretty terrible if the CEO of a company is turning down this kind of offer within the company.

8. remixfa

Posts: 14605; Member since: Dec 19, 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: 14605; Member since: Dec 19, 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

Posts: 5506; Member since: Oct 08, 2009

Samsung does business with Foxconn how do you feel about that hypocrite?

16. remixfa

Posts: 14605; Member since: Dec 19, 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 unregistered

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: Oct 18, 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".

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