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It was learned through Apple's 8-K filing with the SEC on Thursdaythat CEO Tim Cook specifically declined to be included in adividend award program being offered to those employees who holdrestricted stock units (RSUs). In the filing , it was reported that Apple's board of directors had decided togive RSU holders the same $2.65 per share quarterly dividends offered to public shareholders, but Cook requested not to take theaward that would be worth more than $75 million. From the 8-K filing: On May 24, 2012, the Compensation Committee (the "Committee") ofthe Board of Directors of Apple Inc. (the "Company") approvedamendments to each outstanding and unvested restricted stock unitaward granted by the Company to its employees (other than TimothyD. Cook, the Company's Chief Executive Officer). The amendmentsprovide that if the Company pays an ordinary cash dividend on itscommon stock, each award will be credited with an amount equal tothe per-share cash dividend paid by the Company, multiplied by thetotal number of restricted stock units subject to the award thatare outstanding immediately prior to the record date for suchdividend. The amounts that are credited to each award are referredto as "dividend equivalents." Any dividend equivalents credited toan award will be subject to the same vesting, payment and otherterms and conditions as the unvested restricted stock units towhich the dividend equivalents relate. Depending on the domicile ofthe employee, accumulated dividend equivalents will either be paidin cash or used to offset employee taxes due upon vesting of therestricted stock units. The Committee determined these amendments were appropriate in lightof the Company's announcement on March 19, 2012 that it intends tocommence paying ordinary cash dividends of $2.65 per share to itsshareholders on a quarterly basis sometime during the fourthquarter of its 2012 fiscal year. As restricted stock units are notoutstanding shares of common stock and thus would not otherwise beentitled to participate in such dividends, the crediting ofdividend equivalents is intended to preserve the equity-basedincentives intended by the Company when the awards were granted andto treat the award holders consistently with shareholders. At Mr. Cook's request, none of his restricted stock units willparticipate in dividend equivalents. Assuming a quarterly dividendof $2.65 per share over the vesting periods of his 1.125 millionoutstanding restricted stock units, Mr. Cook will foregoapproximately $75 million in dividend equivalent value. Because restricted stocks vest in intervals, an executive oremployee is more apt to stay with a company and perform well toensure the highest payout when the units convert to shares. After being named CEO in 2011, Cook received a one million RSU bonus which at the time was worth an estimated $383 million.The chief executive's RSUs are on a five and ten year vestingschedule, meaning that half of his restricted units vest in fiveyears with the remainder to be converted after ten years. Earlier this month, Cook sold 37,500 RSUs that were awarded to himduring his tenure as interim CEO two years ago, netting about $11.1 million in the process. The e-commerce company in China offers quality products such as China Swimming Pool Brush , Safe Cleaning Products For Pets, and more. For more , please visit Swimming Pool Chemical Dispenser today!
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