Form 4: Apple CEO Tim Cook Awarded 195,727 RSUs

Apple CEO Timothy D. Cook received an award of 195,727 restricted stock units, comprising both time-based and performance-based awards.

Summary

• Timothy D. Cook, Apple Inc.'s Chief Executive Officer and a Director, was awarded 195,727 Restricted Stock Units (RSUs) on September 28, 2025.
• The award consists of two tranches: 48,932 time-based RSUs and 146,795 performance-based RSUs (target number).
• The time-based RSUs are scheduled to settle in three equal installments on April 1, 2028, April 1, 2029, and April 1, 2030.
• The performance-based RSUs are scheduled to vest on October 1, 2028, with the final number of units vesting ranging from 0% to 200% of the target based on Apple's relative total shareholder return (TSR) from fiscal year 2026 through fiscal year 2028.

Sentiment

Score: 7

Explanation: The filing reports a routine executive compensation award, which is a positive for the executive and reflects standard corporate governance practices. The performance-based component aligns executive incentives with shareholder returns, which is generally viewed favorably.

Positives

• The award of 195,727 restricted stock units to CEO Timothy D. Cook represents a significant component of his compensation package, incentivizing his continued leadership.
• The inclusion of performance-based restricted stock units, tied to Apple's relative total shareholder return, aligns management's incentives directly with shareholder value creation over a multi-year period.

Risks

• The performance-based restricted stock units (146,795 target units) carry a vesting risk, as the actual number of units received can range from 0% to 200% of the target, depending on Apple's relative total shareholder return performance against a peer group from fiscal year 2026 through fiscal year 2028.

Future Outlook

The filing outlines future vesting schedules for the awarded restricted stock units, with time-based units settling through April 2030 and performance-based units vesting in October 2028, contingent on Apple's relative total shareholder return performance through fiscal year 2028.

Industry Context

The award of restricted stock units, including both time-based and performance-based components, is a standard practice for executive compensation in the technology industry, aiming to retain key talent and align leadership incentives with long-term company performance and shareholder interests.

Comparison to Industry Standards

• This Form 4 details a specific executive compensation award. Without access to Apple's full compensation committee report or peer group compensation data, a direct comparison to industry standards for similar roles at companies like Microsoft, Google (Alphabet), or Amazon is not feasible based solely on this filing.
• However, the structure of time-based and performance-based RSUs is a common and accepted practice in executive compensation across major tech firms, reflecting a balance between retention and performance incentives.

Stakeholder Impact

• Shareholders: The performance-based component of the RSU award aligns the CEO's compensation with shareholder returns, potentially incentivizing long-term value creation.
• Management: The award provides significant long-term incentive and compensation to the Chief Executive Officer, contributing to executive retention and motivation.

Next Steps

• Settlement of time-based restricted stock units on April 1, 2028, April 1, 2029, and April 1, 2030.
• Vesting of performance-based restricted stock units on October 1, 2028, subject to performance conditions based on Apple's relative total shareholder return from fiscal year 2026 through fiscal year 2028.

Key Dates

Recommendation

This Form 4 filing details a routine executive compensation award to Apple's CEO, Timothy D. Cook. Such awards are standard practice and do not typically indicate a fundamental change in the company's operations or outlook that would warrant a 'buy' or 'sell' recommendation based solely on this information. The inclusion of performance-based units is a positive for governance, aligning executive interests with shareholder value, but it is an expected component of modern executive compensation. Therefore, a 'hold' recommendation is appropriate as this filing does not present new information that would significantly alter an investment thesis.

Keywords

Apple, AAPL, Tim Cook, Restricted Stock Units, RSU, Executive Compensation, Insider Transaction, Form 4, Corporate Governance