A striking news shook the business industry when Apple's CEO Tim Cook decided to take a pass on the dividends he could have accumulated on over a million unvested shares that would be worth up to $75 million. According to news reports, Cook requested not to be included in dividends on restricted stock in a filing with the U.S. Securities and Exchange Commission on Thursday.
Why Cook did this?
Cook once mentioned in one of the newly published books of Adam Lashinsky, the Inside Apple, that money is not a motivator for him. At some point, it shows that he is not after the monetary compensation he gets from the company but also looking into the welfare of the shareholders. This 51 year-old highest-paid CEO, who is single and without kids, is known for his modest lifestyle.
How others see the issue?
Although Apple did not give any comment regarding the declaration, Forbes Magazine contributor Tim Worstall cited one reason why Cook made such a move is because he is looking forward to accumulate half a billion over the next 10 years. Moreover, Bill Shope, a research analyst, admired his performance and said that what he did was a phenomenal. An article posted by Chris Macdonald said that Cook's rejection on dividends has something to do with honor and shareholder confidence. According to him honor best describes Cook's reason of not accepting the dividend and it's one way of changing the image of CEO, which people usually perceived as overpaid.
In conclusion, whether it's a strategic move, or an act of passion, no one can say the exact reason behind his decision except Cook himself.
