Apple Inc. on Thursday said its CEO Tim Cook is expected to forego roughly $75 million even though he’s entitled to the payment.
The company revealed in an SEC filing that Cook asked that his "restricted stock units" not participate in a program in which he otherwise would receive the equivalent of dividend payments.
"Assuming a quarterly dividend of $2.65 per share over the vesting periods of his 1.125 million outstanding restricted stock units, Mr. Cook will forego approximately $75 million in dividend equivalent value," Apple stated in the filing.
Apple declined to comment to Reuters on the reason for Cook’s decision.
Apple revealed in March plans to pay dividends of $2.65 per share to its shareholders on a quarterly basis sometime during the fourth quarter of its 2012 fiscal year.
The company’s board Compensation Committee on Thursday approved amendments to outstanding and unvested restricted stock unit awards granted to employees other than Cook. The awards are tied to the payment of ordinary cash dividends on Apple’s common stock.