Apple CEO Tim Cook has been awarded 667,974 restricted stock units or RSUs [restricted stock units] worth more than US$76 million at Apple’s current price, according to a filing with the SEC. And apparently he plans to stick around to steer the company until 2025.
An RSU is is a form of compensation issued by an employer to an employee in the form of company shares. Restricted stock units are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with their employer for a particular length of time.
RSUs give an employee interest in company stock but they have no tangible value until vesting is complete. The restricted stock units are assigned a fair market value when they vest. Upon vesting, they are considered income, and a portion of the shares is withheld to pay income taxes. The employee receives the remaining shares and can sell them at his or her discretion.
The first half of Cook’s RSUs are set to vest in one-third increments in 2023, 2024, and 2025. The CEO will receive 111,329 shares every April starting in 2023.
The second half of the RSUs are performance-based awards and will vest on Oct. 1, 2023, based on Apple’s relative shareholder return. Cook can potentially receive up to 200% of the 333,987 RSUs awarded for performance.