Apple's Tim Cook Refuses $75 Million DividendVW Staff
It would seem that Tim Cook, Apple Inc. (NASDAQ:AAPL) CEO is yet again proving that he was the right choice in picking up where Steve Jobs left off, by charting his own path.
Tim Cook, with his latest move- foregoing a $75 million in dividend payout- has yet again proven that he is a master in investor relations, as well as a great employer who gets the best operational efficiency from his employees.
For one, his decision to come up with a charity matching program for all Apple employees, and give grant dividends to the famed iPhone company shareholders; has not only endeared him to employees, but investors have also joined his camp for good.
In his latest move, Tim Cook will surely have won over any lingering investors to his camp, and he is also going to win accolades for foregoing the $75 million dividend for which he is rightfully entitled.
In a filing from the Securities Exchange Commission, Apple Inc. (NASDAQ:AAPL) awarded $2.65 a share quarterly dividend on restricted stock units that are held by its employees. This was an attractive offer, and it will surely shore up employee loyalty, and increase the respect that Cook enjoys from his employees.
Tim Cook has 1.125 million of restricted Apple shares, and they are due to vest in 10 years. He was supposed to take home $75 million, but he decided not to.
Top executives in various firms have been taking grand payments, while failing spectacularly at their jobs, but it would seem that Tim Cook, who is performing well as the head of the giant tech company will be foregoing $75 million.
This move by Cook, may not seem deliberate, but in reality the gains that Apple is going to make from this symbolic move by its CEO is worth a lot more than the $75 million that Cook refused to take.
In fact, Cook by not taking the dividend payout could in the end make much more because when Apple shares rises, so does his value, since he too has a stake in the performance of Apple.
Apart from gaining accolades from investors and the public, these latest moves by Cook mean that he is making his own stamp at Apple, a feat that is really hard, considering that he took over the mantle from Steve Jobs, who is regarded as the creator of the firm.
After news that he had not taken the dividend payout leaked out, shares for Apple rose, slightly, a reflection of the way the news had been received; positively.