"Effective June 21, 2013, the Compensation Committee of the Board of Directors of Apple Inc. approved the amendment of the restricted stock units awarded on August 24, 2011 to Timothy D. Cook, the Company's Chief Executive Officer. The amendment does not change the original grant date fair value of Mr. Cook's award as originally reported in the Company's Proxy Statement filed with the SEC on January 9, 2012. It does, however, align Mr. Cook's potential realizable compensation from the award with Company performance, and reflects the Committee's intent to have a portion of future equity awards be performance-based for the Company's executive officers, and for Mr. Cook to lead by example."
"The relative TSR criteria will be applied to each 80,000 RSU tranche scheduled to vest on each anniversary of the original Aug. 24, 2011 grant date, and will compare Apple's TSR to the TSR of the companies in the S&P 500 using public data derived from Standard and Poor's."TSR stands for total stockholder return, which includes the rise of the stock price plus the dividends paid during that period. When compared to the examples cited above such as Home Depot and WorldCom, Tim Cook is actually making it harder on himself to earn his full pay since the performance is tied to 10 years. Look, I can talk about this forever. But the bottom line is, we can't have it both ways. We can't demand accountability and then nitpick at the type of reform that we receive. In the case of Cook's compensation package, which really isn't "new" at all, Apple is not dead, nor is the company falling behind. The company is actually leading the way in shareholder protection and executive compensation reform. In describing Apple's stock performance earlier this year, Cook said to shareholders "I feel your pain" -- he meant it. And Steve Jobs wouldn't have wanted it any other way -- if I may speak for him. At the time of publication, the author was long AAPL. Follow @saintssense This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.