New Apple Inc. CEO Tim Cook has been given a million shares of the company stock that vest over the next 10 years worth an estimated $384 million.
The Cupertino company (NASDAQ:AAPL) disclosed the award in a regulatory filing on Friday, two days after Steve Jobs announced he was handing the job over to the former chief operating officer.
Stock options are awesome, if the CEO crashes the company, he gets nothing. If Cook keeps Apple the darling of NASDAQ, he gets rewarded. And so do the stockholders.
Thomas Sowell: There are no solutions, just trade-offs.
I do think CEOs and Board of Directors sometimes abuse their power to grant excessive stock and options, I've seen it from inside. And if they perform bad and crash the company stock, they just grant new options at the new lower price. Stock holders generally have not done much to complain, unless there is a shareholder activist with lots of votes.
Apple has been hugely successful and this is part reward, part keeping this CEO on board. And it is divided over 10 years with lots of strings attached. Seems high, but then again he is probably the #1 CEO right now.
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Republicans are red, democrats are blue, neither of them, gives a flip about you.
