Apple revises Tim Cook's option deal to reflect stock price drop

Apple revises Tim Cook's option deal to reflect stock price drop
Investors in Apple have been taking it on the chin ever since the day the Apple iPhone 5 was launched last September. That was the day that Apple briefly traded over $700. Since then, it has been all downhill for the stock which is currently trading at $413. If you've taken a hit in the wallet or pocketbook thanks to Apple's declining stock price, let it be known that Apple's board feels your pain. As a result of the decline in the stock, it has revised the pay package belonging to CEO Tim Cook.

Under the new plan, should Apple's shares outperform the market over the next 8 years, Cook will get to keep the 1 million Apple shares that originally he was to receive regardless of how the stock fared. But if Apple underperforms the market over the same time period, the board could take away 40% of the shares. In August 2011, when Cook received the pay package, the 1 million share were valued at $383 million. Last September, they were valued at more than $700 million. Today, the shares are worth $413 million.

Despite the revision to his pay package, Tim Cook still has the full support of Apple's board, according to a document filed with the SEC. The executive himself asked Apple to put more of his pay at risk. Consider that his pay package has no upside to it. If Apple goes on to outperform the broad market over the next 8 years, Cook will receive the 1 million shares he was promised and not a share more.

source: AllThingsD

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18 Comments

1. ihatesmartphone unregistered

Good luck with your new pay package... lol XP

2. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

That dude is filthy rich, and you wanna make fun of his pay package. I bet you wish you made a 16th of what he makes. With that kinda money you don't need good luck.

3. ihatesmartphone unregistered

lol... lame statement

4. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

Maybe he can ask J.K. Shin for some tips...oh, right, I forgot that Apple lost stock value on perceived softness, whereas Samsung is losing because people have stopped buying.

5. iushnt

Posts: 3060; Member since: Feb 06, 2013

Any proof on people have stopped buying Samsung products apart from analysts estimations?

6. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Yeah the stock market

7. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

No, your statement was lame, and jealous. You are a couch potato apple hating fanboy. He's a multi millionaire CEO, of the most valued tech company on earth. You're hating...now lol that. Go run some speed tests on your quad core phone, and let Mr Cook handle his huge pay days.

8. ihatesmartphone unregistered

Can't wait to buy iphone 5s/6!! :)

10. Dorothy69

Posts: 498; Member since: May 21, 2013

It's nice to wake up on a Saturday morning and gaze at your Dark & Lovely'ness. I feel bad for our leader and iCEO but, you're kinda' taking a serious discussion about the abysmal stock value drop of "Our Makers" and handling it like an immature Lollipop Guild kid. There really is no need to stoop to such a level; you should feel confidence and pride in knowing that when our beloved Apple releases iOS7 on our next iPhone, with it's rAiNbow BriTe Theme, everything will change and a new revolution will hence forth.

13. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Yeah oh wendyGarrett2

18. networkdood

Posts: 6330; Member since: Mar 31, 2010

he is your leader? Wow...lol

9. Dorothy69

Posts: 498; Member since: May 21, 2013

je je je ..... iPaycut (Wow, that stock has taken a NOSE dive)

11. tedkord

Posts: 17131; Member since: Jun 17, 2009

So, instead of the 400 million dollars they're worth today, he will only get 260 million dollars? How's a guy supposed to live on that?

12. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

What happens if he doesnt make it the 8 years???

14. dorianb

Posts: 617; Member since: Oct 24, 2012

That's what I'm sayin'

15. InspectorGadget80 unregistered

I hope their shares will SHRINK FURTHER.

17. TROLL

Posts: 4851; Member since: Apr 13, 2012

Deep down southâ„¢

19. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

What you're failing to realize, is that shares and market cap value are two different things. Despite their stock falling, they're still "by far" the most valuable tech company on earth. Current market cap for apple is 388.1B for google it's 292.8B. I'm sure that doesn't sit well with fanboygadget80, but it's current as of rite now.

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