CORRECTED-UPDATE 1-Apple CEO gives up $75 mln in dividend income

Thu May 24, 2012 7:24pm EDT

* Cook will not participate in employee dividend program

By Poornima Gupta

SAN FRANCISCO, May 24 (Reuters) - Apple Inc Chief Executive Tim Cook will not be earning dividend income on the more than 1 million shares to which he is entitled, which will cost him about $75 million.

Apple said in a filing with the U.S. Securities and Exchange Commission on Thursday that Cook had asked to be excluded from a recently instituted company program through which employees can accumulate dividends on their restricted stock units that are still vesting.

Asked why Cook was doing this, Apple declined to comment beyond the filing.

Cook, who took over as chief executive from late co-founder Steve Jobs in August, has 1.125 million outstanding restricted Apple shares that are vesting over the next 10 years.

In January, Apple's board granted Cook 1 million restricted stock units (RSUs) for running the company during Jobs' medical leaves and as a retention tool. Half of those units are due to vest in 2016 and the remainder are due to vest in 2021.

Apple said in March that it would pay a cash dividend of $2.65 per share to its shareholders.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article