Apple CEO Tim Cook dinner sells $41m in inventory in pay bundle

Tim Cook dinner and different senior executives at Apple have just lately cashed in tens of thousands and thousands of {dollars} price of the iPhone maker’s inventory, not lengthy after the corporate’s share value slipped from its summer season highs.

In line with an SEC submitting seen by Fortune, on Oct. 3 Apple CEO Cook dinner bought 240,569 shares with a price of roughly $41.5 million.

Nonetheless, the transaction didn’t come with out strings connected, as additional SEC filings reveal the proceeds from the sale of some 270,000 extra shares had been withheld for tax causes to cowl the price of the settlement.

The share sale is Cook dinner’s largest in in two years, following a sale in August 2021 that netted him $335 million in response to Bloomberg calculations.

Cook dinner isn’t the one one who had a multi-million greenback payday this month. SEC filings seen by Fortune present Apple’s senior vp of retail, Deirdre O’Brien, bought 65,536 shares on the identical day as Cook dinner — totaling a payout of slightly below $11.3 million.

Katherine Adams, normal counsel at Apple, additionally bought slightly below $11.4 million price of inventory — once more within the second week of October.

The sale comes as Apple’s inventory slipped from the dizzying highs of summer season 2023, when share costs hit greater than $195 per share. On the time of writing, Apple’s share value sits round $173.

Apple didn’t instantly reply to Fortune’s request for remark.

Regardless of the inventory’s slippage from its 2023 heights, Apple shareholders are prone to be happy with the corporate’s current efficiency. The share value is up 39% for the year to date, and roughly 210% previously 5 years.

The corporate sits comfortably inside the so-called ‘Magnificent Seven’ — mega-cap tech shares that additionally embrace Alphabet, Amazon, Meta, Microsoft, Nvidia and Tesla.

Why the payday?

The sale by Cook dinner, O’Brien and Adams doesn’t signify the identical factor {that a} common shareholder sale would.

All three of the senior executives are vesting part of their compensation bundle, versus merely offloading inventory — a quite common apply amongst Huge Tech bosses.

The SEC filings present the trio are variously vesting performance-based restricted inventory items, inventory awards and restricted inventory items, which many corporations use to compensate their senior employees along with a wage.

Cook dinner, for instance, is cashing in his performance-based shares after requesting — and receiving — a 40% pay reduce at first of the 12 months.

In January, an SEC filing revealed Cook dinner took a $35 million pay reduce from 2022 to 2023. Cook dinner stored the identical base wage — the $3 million it has been since 2016 — however noticed his fairness award worth lower from $75 million to $40 million.

His annual money incentive remained at $6 million.

Cook dinner himself requested the change, the submitting stated, following a 64% shareholder approval of named govt compensation packages, which was down from 95% the 12 months prior.

‘Magnificent 7’ CEO pay

The compensation for tech titans throughout the board varies wildly — and might fluctuate massively from 12 months to 12 months.

Take Amazon CEO Andy Jassy — in a proxy statement released in April it was revealed that Jassy took house $1,298,723 in 2022. The entire is made up of a wage of $317,500 and $981,223 in 401(ok) funds and extra safety prices.

The seven-figure sum signifies a greater than 99% reduce from the long-term compensation bundle outlined for Jassy the 12 months earlier than, when he was awarded $212 million in inventory to be vested over 10 years. 

In the meantime over at Microsoft, CEO and chairman Satya Nadella acquired $54,946,310 in 2022. That’s up from $49,858,280 the 12 months prior courtesy of an increase in stock awards. 

His base wage of $2.5 million stayed he identical because it had in 2021 and 2020.

Whereas Mark Zuckerberg notoriously is paid simply $1 in wage, Meta’s proxy statement for 2023 revealed its CEO and founder additionally didn’t partake within the firm’s bonus scheme.

Zuckerberg was additionally not awarded any additional fairness in Meta “as a result of [the business’s] compensation, nominating and governance committee believed that his present fairness possession place sufficiently continued to align his pursuits with these of our shareholders.”

Nonetheless, Zuckerberg’s compensation for 2022 did come to greater than $27 million, the assertion added, because of Zuckerberg’s safety program.

Sundar Pichai, CEO of Google’s mother or father firm Alphabet, had one other large 12 months for inventory awards in 2022.

The company’s proxy statement, launched in April, present Pichai earned a complete goal award worth of $210 million.

Nonetheless, Alphabet highlights that Pichai’s fairness rewards are up to date on a triennial foundation — i.e. as soon as each three years — including: “Sundar’s final fairness award was granted in December 2019, and absolutely vested on the finish of December 2022. In December 2022, the Compensation Committee granted a brand new fairness award to Sundar to acknowledge his robust efficiency as our CEO.”

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