Apple CEO Tim Cook has sold a significant portion of his Apple stock holdings, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The sale, totalling over $50 million, comes as Apple’s stock price recently hit a new all-time high.
Cook reportedly sold 223,986 shares of Apple stock at an average price of approximately $227 per share.This transaction brings his total compensation for 2024 to over $70 million, including his base salary and performance-based bonuses.
Apple executives, including Cook, are awarded company stock as part of their compensation package. These stock grants typically vest over a period of time, with a portion becoming available for sale each year. This recent sale by Cook represents a portion of his vested stock options.
What is the rule under which Apple CEO Tim Cook sold his shares
The pre-arranged trading plan implemented on August 31, 2023 aims to shield company CEOs from insider trading allegations. This type of plan allows company insiders to offload shares at predetermined times and prices. The pre-arranged trading plan is known as a Rule 10b5-1 plan. In simple terms, Apple CEO share sale is a routine financial practice post rollout of this plan.
In 2023, Cook earned a base salary of $3 million, but his total compensation package was significantly higher, reaching $66.2 million due to stock awards, performance bonuses, and other benefits. Despite the sale, Cook remains a significant shareholder in Apple, still holding millions of shares. Analysts believe the sale is unlikely to have a major impact on Apple’s stock price, which remains near its all-time high.