What you need to know
- Tim Cook is set to receive the last stock payout from his original agreement upon taking over as CEO.
- According to Bloomberg, the payout is worth approximately $750 million.
Update, August 26 (8:40 pm ET): Tim Cook has received and immediately sold off all 5 million shares of Apple stock he was awarded today
Apple CEO Tim Cook is set to receive a $750 million payday.
As reported by Bloomberg, Cook is set to collect his last tranche of the contract he agreed to with Apple when he took over the CEO position from Steve Jobs ten years ago.
The haul consists of about 5 million shares worth roughly $750 million, according to calculations by Bloomberg News. Part of the payout is contingent on Apple's stock return over the past three years surpassing at least two-thirds of companies in the S&P 500 -- a threshold the iPhone maker cleared by a wide margin.
According to the report, Apple's continued stock value growth and the subsequent stock rewards that Cook has received have made the Apple CEO a billionaire with an estimated net worth of $1.5 billion. The company has also reached new financial heights under Cook.
When he succeeded Jobs 10 years ago, some observers doubted that the technocratic Cook could match his predecessor's star power and continue Apple's successful streak. But on his watch, the company's revenue has more than doubled and its shares returned more than 1,100%, pushing the market value above $2 trillion.
Under Cook, a number of new Apple products have been launched, including the Apple Watch and AirPods lineup. The company has also greatly increased its services business with Apple Music, Apple TV+, Apple News, Apple Arcade, and Apple Fitness+.
Cook has already said he plans to give away most of his fortune and is known for donating millions in Apple stock to a number of charities and organizations over the years.
Cook is set to continue overseeing the launch of new products this fall. Apple is expected to host a virtual event on September 14th which will likely include the launch of the iPhone 13 and 3rd generation AirPods.
Update, August 26 (8:40 pm ET) — Tim Cook has received and immediately sold off all 5 million shares of Apple stock he was awarded today
As reported by CNBC, Tim Cook has already sold off the more than 5 million shares of Apple stock he received today. According to a filing with the SEC, the total value of the stock reached higher than $750 million. The report also revealed that Cook donated $10 million to an unnamed charity earlier this week.
