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Apple CEO Tim Cook received his largest stock grant since 2011, which will compensate him with a large slug of stock through 2025, according to a SEC filing on Tuesday.
Cook will receive 333,987 units of restricted stock, a third on an annual basis beginning in 2023.
In a separate package, Cook will also stock 333,987 units in 2023, which could double if Cook meets Apple’s performance-related targets on the stock market. But if Apple underperforms, it’s also possible that Cook won’t get any of that package.
If Apple continued to perform well, Cook would receive 1,001,961 shares of Apple by 2025, similar to the grant of 1 million shares he received immediately after becoming CEO in 2011.
At the closing price of $ 114.09 on Tuesday, the maximum number of shares that Cook could acquire is $ 114 million. That amount will rise or fall with Apple’s stock price.
“Tim has innovated and focused on unique innovation and focus for his role as CEO,” Apple’s board of directors said in a statement. “For nearly a decade, we are offering Tim a new stock grant that will build over time in recognition of his outstanding leadership and with great optimism for Apple’s future as he advances these efforts . ”
The stock grant shows that Cook’s performance over the past decade has been heavily viewed by Apple’s board, which wants to ensure that he will be competitively paid through 2025 if he remains Apple’s CEO.
Shares are Cook’s primary compensation, although he also receives a salary and an annual bonus. In 2019, he received a $ 3 million salary and a $ 7.67 million bonus, but after adding stock, Cook took home more than $ 125 million.
His previous grant since 2011 expires next year. At the time, that grant was valued at $ 384 million, but ended up being overpriced, as Apple’s share price had risen significantly during that time. Since 2011, Cook has become Cook CEO, according to an estimate by executive compensation firm Equilar, his compensation has exceeded $ 963.5 million.
Cook planned to donate his fortune, he said in 2015.