December 28, 2012
Apple CEO Tim Cook will pocket $4.17 million in 2012, a significant dip from the $378 million salary he received in cash and stocks last year.
According to a proxy statement filed with the United States Securities and Exchange Commission, Cook’s base salary is $1.35 million with non-cash compensation making up the remainder of the payment.
That is a big change from the $378 million he received last year and the $59 million he was handed in 2010. The drop in compensation is not a punishment, however — it is all part of the company’s plan.
According to The Next Web, Apple’s board of directors gave Cook 1 million in restricted shares when he was appointed CEO in August 2011. Those shares, worth roughly $376 million at the time, were a promotion and retention award.
Half of those shares will be vested Aug. 24, 2016, the other half on Aug. 24, 2021.
Given the large financial reward in Cook’s future, the compensation committee did not grant him additional stocks this year.
Cook has, however, enjoyed healthy raises each year. He was paid $800,016 in 2010, $900,017 in 2011 and $1,357,718 this year.
“In deciding to increase the cash compensation for Mr. Cook, the Compensation Committee considered the Company’s financial results, Mr. Cook’s responsibilities as CEO, and his total cash compensation opportunities as compared to the total cash compensation opportunities of the other named executive officers as well as the total cash compensation opportunities of CEOs at peer companies,” the proxy statement reads.
“The target annual cash compensation for Mr. Cook remains significantly below the median annual cash compensation level for CEOs at peer companies.”
Cook may not be paid as much as his contemporaries at other technology companies, but he is paid significantly more than his predecessor, the late Steve Jobs.
Jobs was famous for his annual $1 salary. His compensation came in the form of stocks and non-cash incentives.
The proxy statement also details compensation for Apple’s other senior executives.
Chief financial officer Peter Oppenheimer, senior vice-president of technologies Bob Mansfield, senior vice-president and general counsel Bruce Sewell and senior vice-president of operations Jeffrey Williams all raked in $805,400.
Their base salary will increase to $875,000 in 2013.
Mansfield received $85.5 million in stock and non-cash compensation, Sewell $68.9 million, Williams $68.6 million and Oppenheimer $68.5 million.
Each was given 150,000 restricted shares (RSUs) in 2012.
The filing indicated 50 percent of the awards are to be vested in June 2013, and the other 50 percent in March 2016.