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Tim Cook reaps $89.2-million stock award

Apple shares outperformed at least two-thirds of businesses in S&P 500 Index over 3 years

Anders Melin | Bloomberg 

Tim Cook, Chief Executive Officer, Apple
Tim Cook, Chief Executive Officer, Apple

Chief Executive Officer collected 560,000 shares, half of them linked to the company's and the maximum allowed under the iPhone maker's long-term compensation programme.

The award was worth $89.2 million when it was granted on Thursday, based on Apple's $159.27 closing price. He received the performance-linked stock because shares outperformed at least two-thirds of businesses in the over three years, according to a regulatory filing Monday. It's Cook's fourth consecutive at the top threshold.

Cook, 56, receives from a giant stock award he got after succeeding Steve Jobs in 2011, which was set to vest in two phases over a decade. In 2013, at Cook's request, the board's compensation committee tied about a third of those shares to Apple's relative stock versus the S&P 500.

For the three years ended August 24, shares returned 71 per cent, ranking it in the 81st percentile among index members, according to the filing. The rest of the award will vest as long as he remains on the job.

Earlier this month, shares surged to a record after the company reported a fiscal third-quarter profit that beat Wall Street estimates and boosted its revenue outlook for the year, forecasting strong iPhone sales. Cook said in 2015 that he plans to give most of his fortune to charity.

First Published: Wed, August 30 2017. 01:03 IST