The highest-paid chief executive in corporate America has declined a $75 million dividend in equivalent payments on stock that he is due to receive over time, according to The Hollywood Reporter. The executive is Apple CEO Tim Cook.
In March, Apple said it plans to start paying cash dividends of $2.65 per share on a quarterly basis sometime during the fourth quarter of its fiscal year, the story reports.
According to Apple, "As restricted stock units are not outstanding shares of common stock and thus would not otherwise be entitled to participate in such dividends, the crediting of dividend equivalents is intended to preserve the equity-based incentives intended by the company when the awards were granted and to treat the award holders consistently with shareholders."
But Cook requested that none of his restricted stock units earn the dividend payments, the story reports, citing a regulatory filing.
According to the report, the filing says: "Assuming a quarterly dividend of $2.65 per share over the vesting periods of his 1.125 million outstanding restricted stock units, Mr. Cook will forgo approximately $75 million in dividend equivalent value.”
While Cook’s base salary last year was a relatively modest $900,000, he earned a total of $378 million in compensation — mostly from restricted stock grants — to rank at the top among highest-paid CEOs, the story reports.