Tim Cook (Credit: Apple)

A new regulatory filing from Apple details the company’s plan to ensure its employees receive the equivalent of the dividends it plans to grant to shareholders, even though the type of stock they hold wouldn’t normally be eligible for the payout.

The only exception is Apple CEO Tim Cook, who declined to make his stock eligible for the dividend, according to the filing.

Apple in March announced plans to start issuing a dividend for the first time in 17 years — part of a plan to pay out $45 billion over three years as a means of returning value to shareholders and reducing its cash balance, now approaching $100 billion.

Here’s a link to today’s full filing and an excerpt explaining the decision by the Apple board’s compensation committee.

“The Committee determined these amendments were appropriate in light of the Company’s announcement on March 19, 2012 that it intends to commence paying ordinary cash dividends of $2.65 per share to its shareholders on a quarterly basis sometime during the fourth quarter of its 2012 fiscal year. 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.”


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  • Guest

    Tim, please stop giving away Apple’s money. You’re supposed to invest it to grow the business, not to make friends in Cupertino and in China.

    You do know how to grow a business, don’t you, Tim?

    • Victor

      Susan, this negative fixation on Tim isn’t healthy.

      • Guest

        Not now, Victor. Tim and I are talking.

        • Guest

          Susan, that’s not Tim. It’s just the voices inside your head.

          Tim is otherwise preoccupied and very happy with his record of accomplishment over the past nine months, as well he should be. The board loves him. Employees love him. Investors love him. I can understand why Steve Ballmer hates him. After all, like Jobs before him he makes Steve look like a clown. But where’s your animosity coming from?

          • Guest

            My animosity comes from Tim’s record.

            In Steve Jobs’s first year as “iCEO,” Apple introduced iMac, the computer which singlehandedly started the company’s turnaround from bland beige-box purveyor to innovative design house.

            In Tim Cook’s first year as CEO, Apple introduced iPad 3 and iPhone 4S, products which are fundamentally identical to earlier versions. Absent any vision at the helm, Apple will continue to drift. One might say, “well, at least they have a big cash pile,” but Tim has been simply giving it away. This inattention to innovation animositizes me.

            Invest and innovate. It’s what made Apple great. Tim needs to stop focusing on making employees and investors like him and he needs to start focusing on whether customers will buy his products.

          • Guest

            Susan, Jobs is dead. Times are different. Steve could make one decision back then and change the course of the whole company. He did. Tim has to make a hundred decisions a day just to keep the elephant dancing. He has.

            Jobs iterated iPods and Macs for years. What’s wrong with Tim iterating the iPad or iPhone once? Both have sold fantastically well. And did you miss Ive’s recent comments? They’ve just completed their “best work ever”. All under Tim’s steady hand. Patience is a virtue.

            Susan, if I can be so bold, you’re kind of schizophrenic on this topic. On the one hand you’re willing to overlook Ballmer’s thirteen years of numerous high-profile failures. Meanwhile you disparage poor Tim who has done nothing but succeed during his first nine months as CEO. Is the difference that “we” did buy Apple shares while “we” don’t own MS? If so, have no fear. They should continue to do very well indeed.

          • Guest

            Victor, your obsession with Steve Ballmer is something we should discuss more in our private sessions and less in discussions about other men.

            I judge Tim Cook based on his actions and based on the actions of his predecessors. So far he’s been much more of a Sculley than a Jobs, if you get what I mean.

            As a CEO, it’s Tim’s job to get things done. It’s not his job to make friends, which is what he’s been trying to do by foolishly squandering Apple’s cash holdings.

  • Guest

    Silly gesture that doesn’t have any logical business basis. It’s probably not that important to employees anyway, particularly given the fantastic returns Apple has enjoyed for a decade and continues to enjoy.

    • Guest 2

      Actually, it has a strong logical basis. When the company pays a $2.65 dividend, the stock price typically goes down by $2.65. Not paying a dividend to holders of RSUs is like not splitting the RSUs when you split the stock.
      Note that Apple isn’t paying the these dividends immediately. Instead, they vest with the stock.

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