Tim Cook, the well-known CEO of Apple, has made a financial coup by selling a total of 223,986 shares of the company, which has allowed him to enter the astonishing figure of $50,276,076. This operation was reported through a document filed with the United States Securities and Exchange Commission (SEC), and is not something new for Apple’s head, Cook, who usually sells Apple shares during the month of October.
The sale is part of a package of shares that Cook had previously received as part of performance-based compensation within the Californian company.
This strategy, designed to reward Cook’s leadership and his ability to keep Apple at the top of the market, has brought him significant benefits over the years.
Despite this million-dollar sale, Cook remains one of Apple’s main shareholders. Just a few days earlier, the CEO had received a new package of 219,502 additional shares. These new shares will be divided into two blocks: 54,876 of them will be consolidated in three equal parts during the months of April 2027, 2028 and 2029. On the other hand, 164,626 shares are linked to the company’s performance, which means that the The final number of shares that Cook will be able to acquire will depend on Apple’s performance between fiscal years 2025 and 2027.
The number of shares that can be consolidated will vary depending on the success of the company. Depending on the results, Cook could obtain between 0 and 200% of the total of these shares, with October 1, 2027 as the key date to see how many will have become effective. It will all depend on how Apple’s performance compares relative to other S&P 500 companies in the coming years.
As you might expect, Tim Cook doesn’t just benefit from the sale of shares. As of early 2024, Cook owned more than three million Apple sharesin addition to approximately 1.3 million RSUs (restricted stock units) that had not yet been vested. In total, the value of the shares that have not yet been sold exceeds $500 million. This reinforces the fact that the majority of Cook’s total compensation comes from stock-based incentives, bringing his compensation and the company’s results to the same level.
When a share “vests,” it means that the holder can access it after meet certain requirementssuch as a waiting period or performance goals. This is common in stock-based incentives, especially for senior executives. Restricted shares (RSUs) are released gradually, allowing their sale or transfer once established conditions are met.
In 2023, Tim Cook’s base salary was $3 million, but his total earnings reached much higher figures thanks to $47 million in stock awards, a $10.7 million bonus, and another $2.5 million in additional compensation.
Cook’s fortune continues to grow with Apple’s success in the markets, highlighting how his compensation is directly linked to the company’s performance. With million shares yet to consolidateCook has a very solid financial future assured.