Cook will get 333,987 units of restricted stock that will vest in thirds on an annual basis starting in 2023.
In a separate package, Cook will also vest 333,987 units of stock in 2023, which could double if Cook meets targets related to Apple’s performance on the stock market. But if Apple underperforms, it’s also possible that Cook will get none of that package.
If Apple continues to perform well, Cook will receive 1,001,961 shares of Apple by 2025, similar to the grant of 1 million shares he received shortly after he became CEO in 2011.
At Tuesday’s closing price of $ 114.09, the maximum number of shares Cook could receive are worth $ 114 million. That amount will rise or fall with Apple’s stock price.
“Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity,” Apple’s board of directors said in a statement. “For the first time in nearly a decade, we are awarding Tim a new stock grant that will vest over time in recognition of his outstanding leadership and with great optimism for Apple’s future as he carries these efforts forward.”
The stock grant suggests that Cook’s performance over the past decade is viewed highly by Apple’s board, which wants to make sure that he will be paid competitively through 2025 if he continues to be the CEO of Apple.
The 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 over $ 125 million.
His previous grant from 2011 expires next year. At the time, that grant was worth $ 384 million, but it ended up being more, because Apple’s stock price has risen significantly during that time. Since 2011, the year Cook became CEO, his compensation has totaled over $ 963.5 million, according to an estimate from Equilar, an executive compensation firm.
Cook plans to donate his fortune to charity, he said in 2015.