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Tim Cook nets $22m in bonuses for covering Jobs

updated 11:45 pm EST, Fri March 12, 2010

SEC reveals cash and stock bonus for Cook

Apple in a just-published SEC filing has revealed that its chief operating officer, Tim Cook, was paid about $22 million in bonuses for acting as CEO during Steve Jobs' medical leave last year. The payouts included both a $5 million immediate bonus as well as 75,000 units of restricted stock, which at the time issued were worth about $17 million. Both reflect the "outstanding performance" in taking Apple's helm, the filing reads.

Exactly half of the stock is expected to vest a year from when it was issued, on March 10th 2011, while the remaining half will vest another year later.

While many credit Apple's success in recent years to Jobs' return, Cook has been widely credited with mastering the practical side of the company's business. His work has helped gain control of release schedules and reducing the amount of inventory that Apple needed to produce and keep on hand, increasing Apple's profit margins and at times lowering prices.




by MacNN Staff

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  1. Bobfozz

    Joined: Dec 1969

    +6

    Apple...

    A brilliantly run company. Can our government officials take note... go and do likewise! No! Because everyone wants to be a chief! In Tim's case, he did a great job as chief. Bravo.

  1. Foe Hammer

    Joined: Dec 1969

    -5

    Tim Bolt?

    Weeks ago there was speculation that Mr. Cook was going to Bolt for GM. Great Scott! After such a Brawny performance, the man reaps a real Bounty. Viva, Tim Cook! So forgive me for not breaking out the Kleenex for this man who's anything but an off-brand or a Sham. Wow! (Be thankful I didn't talk about how he must be sitting on a White Cloud because he's so Charmin-g.)

  1. tortenteufel

    Joined: Dec 1969

    +2

    Well,

    he just earned 44.000 ipads....

  1. Outdo

    Joined: Dec 1969

    +5

    Not $22 Million

    He has gotten $5 million in cash NOW. He has options that are worth $17 million in today's market. He has to PAY for those shares, when they vest IN THE FUTURE, if he is still with the company then (a good bet). If those shares are more, less or equal to his vested option price, he will IN THE FUTURE pocket the difference between the vested price for which HE PAYS for the stock and the price for which he sells the stock (when he sells the stock). That could be a plus, a minus or a zero. (most likely a plus, as he won't exercise his options if they aren't making him a profit)

    So, a more accurate headline would have been "$5 Million Cash bonus and Stock Options that could be worth even more."

    BTW, all well earned.

  1. Outdo

    Joined: Dec 1969

    +3

    Not $22 Million (an edit)

    To be clearer, the terms of the restricted option could be that they are given to him, not offered at a set stock price. If so, then at the time of vesting, he pays the income tax on the value of the stock (as ordinary income, I believe). MacRumors has the more accurate headline on this.

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