Tim Cook has become another billionaire CEO in Tech Industry but in a slightly unconventional way

Recently, Bloomberg published a report which states that Tim Cook, the CEO of Apple has officially joined the club of billionaires. However, his net worth reaching the billion mark is a little unconventional, because it is rare for a CEO who has not found a company to reach this level.

This report is based on an analysis of the regulatory filings and the estimated market performance of a typical wealthy investor from his share sales to his proceeds.

Apple was founded by the late Steve Jobs. Tim Cook joined Apple in 1998 and was awarded the company’s restricted shares on the first day of his office as the CEO of the company. He will receive his ninth payout from this award this year, most likely this month. According to an estimate, this ninth payout of this particular award is going to add $100 million to his net worth. So, this explains that a major chunk of Tim Cook’s wealth comes from such other equity awards that he has received from Apple.

Currently, Cook owns around 0.02% of Apple shares, which means almost 847,969 shares directly in total. The proceeds from previous share sales, dividends, and compensations added over $650 million to his net worth and have helped him become a billionaire now.

In 2015, Cook said that he planned to give away most of his wealth and he stayed true to his plan. He has already gifted millions of dollars’ worth of Apple shares, and this means that if he has made more undisclosed charity donations, his net worth might actually still be a little less than required for him to become a billionaire. However, this is just speculation.

Apple reached the $1 trillion market value two years ago. Now, its current market value has come close or according to some estimates, has already reached the $2 trillion mark. This is owing to the fact that Apple stock value increased by 5% in the second week of August 2020.

Apple’s rise in market value led to the calculations and estimations of Tim Cook’s net worth too. However, Apple has not commented on anything on the report by Bloomberg stating him as a billionaire.

Even if Tim Cook has accumulated more than $1 billion worth of wealth and fortune, it still is not confirmed because of his philanthropic causes and his multiple donations and charitable gifts that he keeps giving, disclosed and undisclosed.

But Apple’s stock value increment was precedented. The coronavirus pandemic disrupted the entire world and crashed the world economy, but it became a blessing in disguise for tech giants like Apple. The demand for the products and services of Apple increased amidst the pandemic and that explains their growth in the market.

Photo: Digital First Media/The Mercury News / Getty Images

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