What is Tim Cook Paying For?
Apple (NASDAQ:AAPL) chief executive Tim Cook will only receive a total of $4.16 million as compensation this year, representing a drop of 99 percent from 2011. Last year, Cook was awarded $378 million, making him the highest-paid CEO in the country.
How Does the Salary Break Down?
Cook’s 2012 pay is made of $1.36 million in base salary and $2.8 million as incentive plan compensation, according to a regulatory filing reported by Bloomberg. Cook did not receive any stock awards this year, though his base salary of $1.3 million went up from $900,000 last year and $800,000 the year before. While Apple’s board awarded Cook 1 million restricted shares worth around $376 million in August 2011 when he was appointed CEO, those qualify as retention awards. Half of those shares will be vested on August 24, 2016, and the other half on August 24, 2021.
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“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,” Apple said in a statement.
Cook was forced to publicly apologize for the company’s maps faux pas, where Apple’s Google (NASDAQ:GOOG) Maps replacement was faulted by users and critics alike. The company’s usually healthy share price has also seen some uncertainty lately, and is down almost 27 percent from its record high in September.
Apple chief financial officer Peter Oppenheimer’s 2012 compensation totals $68.6 million, up from $1.42 million a year earlier.
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