California: Tim Cook, the chief executive of Apple, has collected $89.6m as part of a 10-year deal that he signed as an incentive to keep the iPhone maker at the forefront of the technology industry after he took over the reins in 2011 from company co-founder Steve Jobs, reported the Guardian.
The windfall was made up of the proceeds of the sale of 560,000 shares, according to a regulatory filing.
Cook received half the award because Apple’s stock delivered shareholder returns in the top third of the Standard & Poor’s 500 index during the past three years.
He got the other 280,000 shares for simply staying on the job. The share awards was set by last Thursday’s closing price of Apple’s stock – $159.27.
Apple set aside more than 291,000 shares sold for $46.4m to cover Cook’s tax bill. The stock package awarded to Cook in 2011 was originally valued at $376m, but is now worth much more because Apple shares have increased by six-fold since he signed the deal.
Cook is still in line to receive 2.94m shares of Apple stock currently valued at $479m, based on Tuesday’s closing price of $162.91.
The ascent has established Apple as the world’s most valuable company, thanks largely to the enduring popularity of the iPhone introduced 10 years ago under Jobs’ leadership.
As long as he remains boss, Cook will receive 560,000 shares of stock annually from August 2018 through August 2020.
He will then get 1.26m shares in August 2021 as the final payment under his original contract. Cook told Fortune magazine in 2015 that he intends to give away most of the fortune that he makes at Apple.