Apple CEO Cook gives up $75M in stock dividends

May 25, 2012

(AP) -- Apple CEO Tim Cook is giving up $75 million in dividends on restricted stock that the company is awarding to all of its employees.

In a filing with the Securities and Exchange Commission on Thursday, Apple Inc. said that Cook requested that his restricted stock units not receive dividends. The dividends that Apple workers are getting amount to $2.65 per quarter for each restricted stock unit held. The shares are not normally eligible to receive dividends, so Apple's decision is a perk for its employees.

The decision comes two months after Apple introduced a regular dividend and authorized a $10 billion stock buyback program to start giving some of its cash hoard back to shareholders. It was a move that former CEO Steve Jobs long resisted. After his death last year, Apple's management has signaled that it's been considering options for the money, which amounted to nearly $100 billion.

Even without the dividend, Cook, 51, remains one of the highest-paid CEOs in America. His pay package was valued at $378 million when he became Apple's chief in August. That was almost entirely in stock awards, some of which won't be redeemable until 2021, so the value could change dramatically.

Assuming Apple pays quarterly dividends of $2.65 over the vesting period of Cook's shares, the company said he will give up about $75 million in value.

Shares of Cupertino, Calif.-based Apple fell $5.60 to $559.72 in afternoon trading Friday. The stock has traded between $310.50 and $644 over the past year.

Explore further: Apple gives chief operating officer $5M bonus

0 shares

Related Stories

Apple gives chief operating officer $5M bonus

March 13, 2010

(AP) -- Apple Inc. is giving its chief operating officer a $5 million bonus for "outstanding performance" running the company while CEO Steve Jobs was on medical leave.

Comcast CEO's 2010 pay package valued at $31.1M

April 1, 2011

(AP) -- Brian Roberts, the CEO of cable company Comcast Corp., received a compensation package valued at $31.1 million in 2010, up 14 percent from a year earlier as the company worked to complete a deal to become the majority ...

Apple gives Tim Cook 1 million shares

August 27, 2011

(AP) -- Apple has given Tim Cook 1 million shares of restricted stock as he takes over as reins of the company from Steve Jobs. At current prices, the stock package is worth more than $383 million.

Apple CEO Tim Cook could top pay list in 2011

January 10, 2012

(AP) -- Tim Cook could well end up being the highest paid CEO in America in 2011, after Apple Inc. granted him a million restricted stock units last August for taking the reins shortly before co-founder Steve Jobs died.

Apple to pay dividend, start stock buybacks

March 19, 2012

Thirty-six years after its founding, Apple Inc. is finally loosening up its purse strings to reward shareholders directly, by instituting a dividend and share buyback program.

Apple's Cook top-paid US CEO in 2011: report

May 21, 2012

Apple chief executive Tim Cook topped the list of the best-paid CEOs in the US in 2011 thanks to stock options that put him more than $300 million above his next rival, a Wall Street Journal survey showed Monday.

Recommended for you

How to curb emissions? Put a price on carbon

September 3, 2015

Literally putting a price on carbon pollution and other greenhouse gasses is the best approach for nurturing the rapid growth of renewable energy and reducing emissions.

Customizing 3-D printing

September 3, 2015

The technology behind 3-D printing is growing more and more common, but the ability to create designs for it is not. Any but the simplest designs require expertise with computer-aided design (CAD) applications, and even for ...

Magnetic fields provide a new way to communicate wirelessly

September 1, 2015

Electrical engineers at the University of California, San Diego demonstrated a new wireless communication technique that works by sending magnetic signals through the human body. The new technology could offer a lower power ...

2 comments

Adjust slider to filter visible comments by rank

Display comments: newest first

El_Nose
not rated yet May 25, 2012
That is not a good sign
rwinners
not rated yet May 25, 2012
Take the money and run.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.