Tim Cook will yield profits if the company’s performance in the market
As a strategy for shareholders and major investors regain confidence in the company, Apple CEO Tim Cook said it is willing to give up some of their future earnings in the event that the company’s performance is not positive.
Thus, the compensation received by the executive depend on the same variables used for shareholders to receive their winnings in each annual closing of accounts, which although it sounds logical to do so, it is the way companies to distribute their profits.
As reported by Apple in a statement, “it was pautar determining awards to executives based on performance of the company and not as compensation temporanl, as done so far”, for this reason, and as shown “leadership and example” as the press release, CEO Tim Cook decided to give 40% of their future earnings through Actions scheduled for 2016 and 2021, according to what was stated when he returned to the firm in 2011.
With the new scheme of risk, Cook will receive shares each year, but these will be achieved by the performance of the company in the market, as with the actions of all other investors. The Cook stock portfolio also subject to payback investors receive and position the ROI occupies in public financial indices.
The risk is latent, a history of the last two years show a trend unstable because when Tim Cook signed his return, the shareholding agreement worth U.S. $ 376 million, reaching a peak in 2012 of U.S. $ 705 million to give to U.S. $ 406 million today.
Link: After Stock Slide, Apple Puts 40 Percent of Tim Cook’s Pay Package At Risk (AllThingsDigital)Tags: Acciones, Actions, Apple, Economía, Economy, Inversiones, investments, Tim Cook