Tim Cook Refuses 75 Million Dividends from Apple Restricted Stock
Apple CEO Tim Cook has refused 75 million dollars worth of dividends that were to be paid out on his restricted stock in the company. Apple announced that a $2.65 per quarter dividend was to given to each employee that held restricted stock but a filing with the Securities and Exchange Commission on May 24 showed that Steve Job’s replacement had asked the company not to give him his dividends.
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The reason for Tim Cook’s rejection of such a large pay day has not been stated and the CEO himself has not made any comments.
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Steve Jobs, the iconic Apple CEO who passed away in 2011, was not in favor of giving out dividends to share holders. With his untimely death, the management of Apple quickly moved to make arrangements to reward share holders by giving out some of the cash the company had in its vaults. Two months ago the makers of the popular iPhone introduced regular dividends for share holders. On top of this the company laid down the groundwork for a 10 billion dollar stock buyback program.
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Cook owns 1.125 million outstanding restricted Apple shares with a million coming into his possession when the Apple board granted him the restricted stock as payment and incentive for running the firm during Steve Jobs medical absence. Fifty percent of the restricted shares that he acquired at that time are due to vest in 2016 and the rest will vest in 2021. The restricted stocks are also a majority of the salary package that Cook receives from Apple, with some valuing the entire sum to be about $378 million. This easily makes him one of the highest earning CEO in American business today.
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It is inevitable that Cook will be compared to Jobs because the previous CEO had such a large impact on the company and the world in general. Jobs’ genius was accompanied by his demanding nature which made Apple a high achiever but a stressful work place. Many reports indicate that Cook is more laid back and the company has recently loosened up after Jobs regime and started to make decisions that Jobs would never have made. This includes the restricted stock dividend and release of Siri in beta mode.
