Tim Cook, the man who took over as Chief Executive Officer of Apple from the mercurial Steve Jobs, who passed away last year due to a long standing illness, has been twice placed on top of a list featuring the highest paid CEO’s in recent weeks. However, if some new legal findings are to be believed, it appears that the Apple CEO is not that greedy for more.
In a filing that was submitted to the United States Securities and exchange commission a couple of days ago, Apple has specified that CEO Cook will not be opting for the dividend equivalents on his restricted stock units. This is a major chunk of money that amounts to around the $75 million mark considering the fact that he received a million restricted stock units last term when he stepped up to becoming the CEO of Apple following Steve Jobs’ illness.
“At Mr. Cook’s request, none of his restricted stock units will participate in dividend equivalents,” the company was quoted as saying in the filing. “Assuming a quarterly dividend of $2.65 per share over the vesting period of his 1.125 million outstanding restricted stock units, Mr. Cook will forego approximately 75 million dollars in dividend equivalent value.”
This huge stock grant of one million shares that was revealed in January after the proxy filing, has certain restrictions that will restrict Tim Cook from collecting the first half of the shares until 2016, and the later half in year 2021.
As per the filing, the amount of money that Cook was entitled to receive is a part of a newly approved amendment by the Apple board which applies to outstanding and unvested restricted stock units. These restricted stock units get a dividend that is equal to that on the company’s common stock units. However, the amount of money cannot be collected until the stock vests. This decision was made by the compensation committee of the Apple board. It may be noted that Apple CEO Tim Cook is not a member of this committee.
Nearing the end of March this year, Apple announced that they had plans to use a significant portion of their 100 billion dollar cash pile to provide a quarterly dividend of $2.65 per share beginning in the fourth quarter of the fiscal year 2012 that begins on the 1st of July. The same plan also spoke about a share repurchase program of 10 billion dollars, which is stated to take off in September.