8-KLeadership Changes

Apple Inc. 8-K Report, Executive Changes (Mar 12, 2010)

Filed March 12, 2010For Securities:AAPL

Summary

This Form 8-K filing from Apple Inc. on March 12, 2010, primarily details a significant compensatory award to Chief Operating Officer Timothy D. Cook. The Compensation Committee approved a one-time discretionary bonus of $5,000,000 and 75,000 restricted stock units (RSUs). This award recognizes Mr. Cook's exceptional performance and assumption of day-to-day operational responsibilities during CEO Steve Jobs' medical leave in fiscal year 2009. The RSUs have a staggered vesting schedule, with 50% vesting on March 10, 2011, and the remaining 50% vesting on March 10, 2012, contingent upon Mr. Cook's continued employment with Apple. This filing underscores the company's commitment to retaining and rewarding key executives for critical leadership during periods of uncertainty.

Key Highlights

  • 1Timothy D. Cook, COO, awarded a $5,000,000 discretionary bonus.
  • 2Timothy D. Cook also received 75,000 restricted stock units (RSUs).
  • 3The award is in recognition of Mr. Cook's performance during Steve Jobs' medical leave in FY 2009.
  • 4RSUs vest in two equal tranches: 50% on March 10, 2011, and 50% on March 10, 2012.
  • 5Vesting of RSUs is contingent upon Mr. Cook's continued employment with Apple.
  • 6The Compensation Committee of the Board of Directors approved the award unanimously.
  • 7The filing was made on March 12, 2010, reporting events from March 10, 2010.

Frequently Asked Questions

The bonus and restricted stock units were awarded to Timothy D. Cook to recognize his outstanding performance and leadership in managing the day-to-day operations of Apple Inc. during the period when CEO Steve Jobs was on a medical leave of absence in fiscal year 2009.

The 75,000 restricted stock units are scheduled to vest in two equal installments. Fifty percent (37,500 units) will vest on March 10, 2011, and the remaining fifty percent (37,500 units) will vest on March 10, 2012.

Yes, the vesting of the restricted stock units is contingent upon Mr. Cook's continued employment with Apple Inc. through each respective vesting date (March 10, 2011, and March 10, 2012).

The compensatory arrangement, including the bonus and restricted stock units for Mr. Cook, was unanimously approved by the Compensation Committee of Apple Inc.'s Board of Directors.