Apple CEO Tim Cook is now billionaire
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Few people on Wall Street thought Tim Cook could match Steve Jobs.
Nine years after Jobs quit and propelled Cook to the top Apple, the company is more valuable than ever – and so is Cook.
Apple’s stock price rose nearly 5% last week, leaving the 44-year-old co-founded Jobs company in his parents’ California home on the cusp of a market milestone: a market value of almost $ 2 trillion.
He was valued at around $ 350 billion when Jobs died. Cook, meanwhile, has joined one of the most elite clubs for CEOs who haven’t actually found the companies they run: his net worth has eclipsed $ 1 billion, according to calculations by the Bloomberg Billionaires Index. .
Cook’s estimate of net worth is based on an analysis of regulatory filings and the application of the market performance of a typical wealthy investor to his stock sales proceeds. Cook, 59, said in 2015 that he planned to give away most of his fortune and had already given away millions of dollars in Apple stock. His wealth might be less if he made other undisclosed charitable donations.
Josh Rosenstock, an Apple spokesperson, declined to comment.
“This technology cycle has been much longer and longer than I expected,” said Hussein Kanji, partner at venture capital firm Hoxton Ventures, which warned on Apple’s long-term prospects after Jobs left the company. “Of all these stocks, Apple has become the greatest cash-generating machine in history.”
Apple’s Market Value and Cook’s Wealth reflect the rise of FAANG shares, a phrase that didn’t even exist back in the days of employment. This also comes as Cook and his fellow Big Tech CEOs – Jeff Bezos from Amazon.com Inc., Sundar Pichai of Alphabet Inc. and Mark Zuckerberg of Facebook Inc. – face antitrust investigations into what critics call monopoly powers.
While Bezos and Zuckerberg have huge stakes in the companies they’ve founded, Cook’s path to the 10-figure club has been more gradual. The vast majority of his estimated wealth comes from the stock awards he has received since joining Apple in 1998, where he was praised for his mastery of the company’s complex supply chain.
He secured a massive award of restricted shares on his first day as CEO. Equity has been paid in annual increments, some of which is contingent on the outperformance of Apple stock by at least two-thirds of the S&P 500 companies. Barring a sudden drop in price of Apple’s stock, Cook is set to receive his ninth payment of the award. , consisting of 560,000 shares, later this month.
About half of these will likely be withheld for taxes, but the rest are expected to increase Cook’s fortune by another $ 100 million. He currently owns 847,969 shares directly, or about 0.02% of Apple’s shares, worth about $ 375 million. Proceeds from previous stock sales, dividends and other compensation add an additional $ 650 million to his net worth, according to Bloomberg calculations.
Cook’s stake is low compared to gigantic post founders such as Bezos, Zuckerberg and You’re here Inc. controls Elon Musk in their respective companies. Apple shares are widely distributed among different investors and executives, so the world’s most valuable company has hit very few billionaires among its employees.
When Jobs resigned in August 2011 and died shortly thereafter, Cook had already served as interim CEO on several occasions. But investors and analysts feared Apple might not be able to innovate as much as it once did.
Although Apple in the past decade hasn’t revealed such a revolutionary new product as the iPhone, the company has always thrived. Cook has overseen the development of devices like the iPhone X and Apple Watch, new services like Apple Music, and research into new frontiers like self-driving cars and augmented reality glasses.
Even the pandemic, which has hit many other sectors of the economy, has been a boon to Apple and other big tech companies as people have become even more dependent on their products and services.
Their recent success contrasts with the economic upheaval caused by the coronavirus: a growing series of bankruptcies, tens of millions of unemployed and massive public deficits.
When Apple recently released results, Cook acknowledged the challenges facing legions of families and businesses.
“We don’t have a zero-sum approach to prosperity,” he said on a conference call. “Especially at times like this, we focus on growing the cake, making sure that our success is not just our success.”
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