Just few days after taking the chief executive chair from Steve Jobs, Tim Cook has been awarded with 1 million shares of apple. It means he has been awarded with a big amount of money. Tim Cook has been given a million shares of the company stock that vest over the next 10 years worth an estimated $384 million. It’s absolutely big money. Isn’t that sounds surprising? It is indeed surprising because huge stock awards aren’t unusual, particularly for incoming CEOs. Boards of directors use restricted shares as incentives for CEOs to do well and to stay with the company. This huge incentive given to Cook indicates a long term bonding of Cook with apple, so the let’s see how long he stays with Apple.
Cook’s management team helped lock down precious electronic component supplies worldwide and let Apple escape unscathed from supply-chain concerns after the March disaster in Japan. He’s also credited with keeping Apple’s worldwide distribution and manufacturing chain a well-oiled machine to keep Macs, iPads and iPhones cranking out rain or shine. As chief operating officer, Cook’s salary was just over $800,000 in fiscal 2010, with a $5 million bonus and more than $59 million in restricted stock. By comparison, Apple paid Jobs $1, with no bonus, but reimbursed him $248,000 for air travel. However, Jobs’ stock holdings are substantial, making him a billionaire.
It’s like a dream come true for him and of course after spending this much time in apple, he deserves to be in that position. But Cook will collect the shares only if he remains an Apple employee for the next decade. Half of his stock will vest in August 2016, and half will vest five years later, in 2021. The award is the second-largest in U.S. corporate history. According to Elliot, a former Apple senior vice president who worked with Jobs from 1980 to 1985, Apple is in good shape and says Tim Cook is a good guy and is very much skilled. Steve has put together a great organization but it’s not the Steve Jobs Apple. The long-term vision is still there. It is imperative to say that over time they are going to get to the end of that vision, and then it’s going to be a whole different world. Indeed, Cook’s new executive chair has got new responsibilities on it.