In a recent 8-K filing with the SEC, Apple has revealed that several top level executives’ stock compensation will now be subject to a performance based criteria. The criteria will also apply to Apple CEO Tim Cook, who was awarded one million restricted stock units back in 2011. Out of those million units, 400,000 will be subject to the stock’s performance, and if the criteria is not met Cook will not be able to cash them out.
Back in September last year Apple’s stock was at an all time high, the price of one single share went as high as $705. Though since then it has dipped, the price has fallen some 42 percent since that record breaking time, and all of it has happened under Tim Cook’s reign as CEO. The dip in share price doesn’t mean that Apple isn’t generating enough revenue or that consumers have started losing interest in its products, though analysts believe that Apple should release new products soon if it wants to further stabilize or even increase the share price. The performance will be determined based on “Total Shareholder Return,” and if Apple is in the top three in Standard & Poor 500 when the time comes to vest, Tim Cook will not have to part with any of his shares.
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