Apple’s (AAPL, Financial) CEO, Tim Cook recently sold 223,986 shares of Apple stock, netting over $50 million, according to a recent SEC filing. Tim often sells shares in October as part of his routine financial strategy, and these shares were granted as part of a performance-based award that evaluates Apple’s return to shareholders against other S&P 500 companies.
Just two weeks ago, Tim was granted another 219,502 shares. Out of these, 54,876 shares are set to vest in one-third increments starting in April 2027, while the remaining 164,626 shares are tied to performance and are expected to vest on October 1, 2027. The actual vesting will depend greatly on how Apple performs financially between fiscal years 2025 and 2027, with outcomes ranging from no shares to double the target based on Apple’s relative return to shareholders.
Currently, Tim holds more than three million shares of Apple, with an additional 1.3 million unvested RSUs, bringing the total value of his unsold stock to over $500 million. The majority of his compensation is made up of these stock grants, far exceeding his base salary and other benefits.
Tim’s compensation included a base salary of $3 million, alongside $47 million in stock awards and $10.7 million in performance-based bonuses. He is also getting other benefits, including life insurance, vacation payout, and travel allowances worth an extra $2.5 million. Market watchers closely see this move in order to determine the secret reason behind this sale. However, this looks like a routine financial strategy.
This article first appeared on GuruFocus.
