Apple’s Tim Cook set to get $279m annual payout

The company's chief executive will receive 560,000 shares of the iPhone maker

FILE - In this June 3, 2019, file photo, Apple CEO Tim Cook waves after speaking at the Apple Worldwide Developers Conference in San Jose, Calif. Cook has forged his own distinctive legacy. He will mark his ninth anniversary as Apple’s CEO Monday, Aug. 24, 2020 -- the same day the company will split its stock for the second time during his reign. (AP Photo/Jeff Chiu, File)

With Apple’s stock soaring, Tim Cook is cruising toward another big payout.

Barring a precipitous drop in Apple’s stock, Mr Cook will receive 560,000 shares on Monday, worth a combined $278.6 million (Dh1.02 billion) as of Friday’s close – his annual haul from an award he got nine years ago after succeeding Steve Jobs.

It’s the latest in a string of victories for Mr Cook, who was named chief executive of the iPhone maker nine years ago. In late July, the company reported a record third quarter. The firm’s stock soared, pushing his net worth above $1bn less than two weeks later. And, last week, Apple’s market value eclipsed $2 trillion.

Mr Cook, 59, said in 2015 that he plans to give most of his fortune away and has already donated millions of dollars worth of Apple shares.

His annual payouts are partly tied to continued service, while the remainder pays out in relation to how well Apple’s stock does relative to other companies in the S&P 500 index over three years.

As of Friday, the company’s return over that period, including reinvested dividends, was roughly 225 per cent, better than the vast majority of firms in the index, according to data compiled by Bloomberg. That puts him well above the threshold for the payout.

Josh Rosenstock, an Apple spokesman, declined to comment.