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Apple CEO Tim Cook refuses $75M dividend on restricted stock

updated 09:59 pm EDT, Thu May 24, 2012

Move costs Cook $75 million over 10 years

Apple earlier today filed an 8-K form with the Securities and Exchange Commission, indicating that the board of directors has decided to give restricted stock holders the same $2.65-per-share dividend they expect to give public shareholders. CEO Tim Cook has requested he not be awarded the dividend, however, costing him an estimated $75 million dollars over the next decade.

Restricted stock is typically awarded over time, dependent on performance and other contract-specific employment metrics. Tim Cook was awarded one million restricted stock units upon commencing his job as CEO. Half of Cook's restricted stocks convert themselves to regular shares in five years, the other half in ten. Today's 8-K from Apple stated that any employee with restricted stock units, regardless of vestment date, will receive the dividend. Depending on where the employee lives, the dividend will either be paid in cash, or used to offset future taxes due on awarded stock.

Cook made the specific request to Apple's compensation committee that he not be awarded the dividend. No specific motivation for the refusal of the award was given. Earlier this month, Cook sold 37,500 shares that were awarded to him during his tenure as interim CEO two years ago, netting $11.1 million. [via AppleInsider]



By Electronista Staff
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  1. facebook_Ben

    Via Facebook

    Joined: May 2012

    +4

    he wont starve

    he wont starve people! its gonna be okay!

  1. DaJoNel

    Fresh-Faced Recruit

    Joined: Aug 2010

    +2

    To all who say

    Apple is just as greedy and corrupt as the rest! There's nothing special about this company! Tim Cook, Steve Jobs, and the rest are just out for the money and don't care about the end user! To all who say that. You. Are. Pathetic.

  1. jink

    Fresh-Faced Recruit

    Joined: Jan 2009

    -9

    Hey DaJoNel

    Your cynicism and negativity is by far the most pathetic. You have no right to question the motivation of other people whom you know nothing about. It is quite common for fortunate beings to recognize there situation and try to "pay it forward" by offering generously to others. Much of what is good in this world comes through this very process. Apple's good fortune rests substantially on this merit. Yes, greed is and has been tearing at the heart of the world for too long but so too has cynicism and negativity.

  1. noverflow

    Fresh-Faced Recruit

    Joined: Aug 2001

    +10

    i think you read that wrong

    read the last line again "To all who say that. You. Are. Pathetic."

  1. jvputten

    Fresh-Faced Recruit

    Joined: Aug 2001

    +1

    font-size:13px

    Swing and a miss!

  1. hayesk

    Professional Poster

    Joined: Sep 1999

    +3

    Nice gesture

    If I were in that position, I'd use the money used for charity, set up a scholarship fund for computer science students to attend WWDC, or similar.

  1. Flying Meat

    Dedicated MacNNer

    Joined: Jan 2007

    -2

    Or, dump it into the long

    needed/desired MAC: Mac Administrator Conference. :)

  1. mac_in_tosh

    Junior Member

    Joined: Dec 2011

    -4

    DaJoNel:

    He already was awarded > $300 million upon ascending to CEO so maybe he's just embarassed to accept this also. One look at the working conditions in Apple's offshore factories makes the case that they are indeed just out for the money.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +1

    Or...

    Apple earlier today filed an 8-K form with the Securities and Exchange Commission, indicating that the board of directors has decided to give restricted stock holders the same $2.65-per-share dividend they expect to give public shareholders.

    Wow, so BODs vote to give themselves a dividend! How nice!

    CEO Tim Cook has requested he not be awarded the dividend, however, costing him an estimated $75 million dollars over the next decade.

    The cost would be far less. Dividend income is taxed at a rate of at least 28%, probably higher based on your salary. Add in state taxes as well. So it might cost him 'only' 40 million.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: To all who say

    Apple is just as greedy and corrupt as the rest! There's nothing special about this company! Tim Cook, Steve Jobs, and the rest are just out for the money and don't care about the end user! To all who say that. You. Are. Pathetic.

    You, of course, are making the assumption that because he's decided to forgo a dividend, he is somehow 'different'? Maybe, maybe not. Maybe the entire accounting staff is right now working on ways to funnel him $100 million tax free via their overseas holdings and all.

    Oh, and if Gates or Ellison or Schmidt or Zuckerburg had done this, you would have claimed it was just grandstanding with ulterior motives.

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