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]