Apple Awards Tim Cook 1,000,000 Shares of Stock as CEO Bonus

[rjohnstone]

I thought I read that Cooks get paid $40k a year in salary.

Cook had a salary of $800,400.00 as COO last year.
He also made $900k in an additional bonus, plus $40k in 401k matching.
Then had was awarded a $5M bonus for filling in for Steve and 75,000 shares of restricted stock of which half matured this year and the rest in 2012.
All told, he earned $59 million in 2010.
That made him the highest paid tech industry executive in 2010.

 

[chirpie]

He can only start collecting in 2016. Somehow I don't see Cook as highly motivated by greed like Steve Ballmer.

Developers! Developers! Developers! Developers! Developers! Developers! Developers!

 

[paul4339]

In the business world, it's not always about how hard you work, but how much value you bring to investors. You make them money - you get bonus.

$380M over 10 years = $38M per year.

I don't know if he deserves $38M/year bonus BUT hey, at least the guy has to stick around for 5-10 years before collecting AND he has proven track record that he can build and run a company that's bringing in profits of $1/2 Billion per week.

(if it were my company, I'd probably lower his base salary but add on a hefty additional bonus based on performance)

... while we are on the topic of compensation, here's some interesting ones:

Sanjay Jha of Motorola mobility got $100M+ several years ago after only 3 years at the helm; and look where he took the company and value he brought to his investors.

Eric schmidt got 14M+ shares of Google upon joining in 2001 (which of course netted him $8B+ over < 10 years) and he could have left early; AND he got $100M as a parting gift this year... but hey, he brought shareholder value.

outside of tech...

CEO of Home depot in 2006 got $250M+ and his company slid 12% in the biggest housing boom in recent times. Worse, the competition (Lowe's) went up 175% during the same period.


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[knownikko]

a company that's bringing in profits of $1/2 Billion per week.

I think you're mistaking "revenue" for "profit".

 

[RobertMartens]

He's done more behind the scenes, than many are aware of. Highly intelligent, experienced, and consistent, this man will make a stellar CEO.

The powers to be (not just Steve).

Are you inferring that there is more to know about Tim Cook than has been reported in MacRumors? Please please tell us more. Don't be so coy.

And then you hint about the powers that be. Is that the board or is there something above even the board and higher than Steve.

Could Steve have chosen Tim by himself or had the power to block some other choice. Tim was number two for ages, was anyone else even considered?

BTW did you know Jony Ives has twin daughters and that Steve Jobs has these daughters. How cool is that.

 

[Kan-O-Z]

Perhaps I'm in the minority but the amount of money CEOs and executives make is really ridiculous. I think the amount of money someone makes should be proportional to the amount of work they do, the amount they bring to the table, the amount of stress and sacrifice, etc

Far too often, CEOs are just a small part of the equation that makes a company run and makes it successful. It's all the other "little" men under them that actually make things happen. It's the people that research the products, develop them, market them, service them, and sell them. Then there are all the people that handle the finances, business and lawsuits. Many of these people are working their a$$es off, working weekends, having no life, and giving every ounce of their lives to their companies and make less in one year than what the CEO would make in a day. Meanwhile, many CEO's are enjoying their fat lives, golfing, and just making way too much money.

It's not a fair distribution of wealth. Unless a CEO can prove that he/she is bringing 1,000 times more to the table than some of the most hard working/ best assets of a company which is humanly impossible, it's all *************.

I would like to add that Jobs was not like any other CEO. He did bring a lot more to the table than pretty much any other CEO out there. We'll see about Cook.

I just hate comments like "Cook deserves it", etc...

Oh well, it's just corporate America and the land of equality for you.

Kan-O-Z

 

[cantthinkofone]

Agreed. I make 4x that and hardly work at all. $400K is not a lot of dough.

Where the f are you from that 400k isn't a lot of dough?

If I had 100k a year job right now I would have everything I could ever want and have a retirement setup in about 10 years.

 

[paul4339]

I think you're mistaking "revenue" for "profit".

no I'm not... AAPL made $7.31B in profits last quarter and is on track to make well over $26B in upcoming year.

$26B/52 = 0.5 Billion in profit per week.


They are making $2B+ per week in revenue.


If I were running Google right now, I'd gladly pay Cook $500M bonus over 10 years to run the newly acquired hardware division (and since SJ is gone, I'd probably aggressively hire any of the other senior team members).


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[RobertMartens]

They have to hit hard in China and release iPhone on every major carriers in US. Plus, they have to release cheap iphone and allow it to be used on pre-paid phone.

Next year, everyone is going to buy iPhone for LTE and buy iPad for retina display again and more.

You are funny. First you say that Apple is or soon will be the most successful company of all time and then you offer Apple much needed advice. Thanks for pitching in. Where do you stand on licensing iOS?

 

[nylon]

As CEO or COO he will never have the time to spend it. As is the nature of such a roll.

 

[el-John-o]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)

I must say- good move on Apples part! If stocks say the same, that's an annual salary of over $40 million dollars on top of whatever compensation he gets. Obviously it won't be paid annually but, that's still the asset value he will receive broken down. Now, many CEOs are paid that much and receive little stock bonus, so they pull bonehead moves to increase next QUARTER earnings even if it'll kill the company in 5 years (what does he care he can retire). Apple has set itself up in a position where the CEO has a genuine incentive to be more concern with the future and the next several years instead of just next quarter. More companies should run like that! Think about it, each buck that comes off that stock price is $1,000,000 out of Tim Cooks pocket essentially...

 

[MacConvert]

380 million...

or it could be worth crap if he f**ks up.

 

[GfPQqmcRKUvP]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_5 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8L1 Safari/6533.18.5)

The new CEO was awarded restricted stock equal to .0011 of the average number of shares outstanding--giving him the hope that if the next decade goes well, he may become the owner of an additional 1/10 of one percent of the company he runs. Concomitantly, each shareholder, by virtue of this grant, has been potentially diluted such that each may own only 99.89% of what they owned immediately prior to the issuance of the RSU's. At today's closing stock price, the potential cost per share of this grant was 41.33 cents.

Cook has been the de facto CEO of one of the most highly-valued public companies for quite some time now, and Steve Jobs and the Board are obviously convinced that he is better-suited to formally take the CEO role than anyone else. Providing this unique individual with a powerful incentive to remain with the company and to align his personal financial success with its shareholders is something an overwhelming majority of Apple shareholders would see as being in their best interest, and certainly worth its minimal potential dilutive effect.

Those offended by the extraordinary wealth this calculus can confer on the recipient (particularly in contrast to the average wage of Apple employees, or to that of workers in general), may be consoled by the realization that there are only a very few people in the world who have the requisite attributes to be accorded such opportunity and who also occupy a position where their performance can increase the aggregate wealth of those paying them by far more than they receive.

I wish people would read AND understand this before they post their knee-jerk reactions.

 

[bobringer]

Stock

It's not surprising if you know what numbers to look at in their financials. The stock should have been much higher, but the resignation was already factored into the price well before he resigned.

They've had seven years to prepare shareholders for that news.

Yep... Even more though, I would suggest that the resignation is precisely WHY the stock has outperformed the past two days.

Apple moves product unlike any other company but trades at a significant discount to companies like google or amazon. Why? Wall street HATES uncertainty. There was always a piece of bad news the market had no idea when it's coming. Now, there is little prospect of any predictable bad news ANYWHERE on the horizon.

Also... Tim Cook builds and ships products unlike anyone in the world. I might have preferred more vision in CEO (think Ive) but nobody was ever fired by selecting Tim Cook for anything. This guy is a genius at what he does.

The people that sold at $353 on Wednesday probably (rightfully) feel pretty dumb right now. This may be the trigger that allows apple to trade at significantly higher multiples. You will never see those shares again for close to that price.

Pretty sure the people that sold at $353 on Wednesday night are

 

[wackymacky]

is his salary going to be the same as Jobs then?

1$?

Maybe Al Gore can shame him into donating some money for
new suicide nets at Foxconn or a 5 cent an hour raise for Apple store drones.

He took that when he took over after Amelio got the boot. I think he was mostly trying to prove a point that Apple needed him more than he needed Apple. But you're right, I don't see Cook taking that. Would be cool if he did though.

his salary is already 58 mil a year.

But even if it wasnt, $1 dollar a year (plus bonuses plus $380,000,000 in ten years) isn't bad, heck, if I was him I'd accept. 90% pay cut to 10c if I could keep the bonus!

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As CEO or COO he will never have the time to spend it. As is the nature of such a roll.

Of course he could spend it. Mig decommissioned fighter jet $10'000'000., small pacific island $100'000'000, you just need to think big.

 

[aussie-reader]

Oh dear a bit of jealousy in this thread.

There are a few things to remember

1. Tim Cook's incentive must be designed for him to stay and look to the long term future of Apple. To many American companies are stunted looking for short term returns on investments. Apple has proved that long term plans and strategies are far more successful.

2. Companies seeking to harm Apple must be discouraged from trying to poach Tim away - imagine the chaos if Google and Microsoft joined together and offered billions of dollars to Tim to take a holiday for the rest of his life. Sure there will be a plan to cover this (like Tim being hit by a bus) but it would not be good.

3. We all want Apple to continue to grow as it has done for the last few years.

This amount which in real terms will have an insignificant impact to Apple's bottom line is good - it could easily have been more. The share dilution looks like it has already been covered by the increased share value of the last day...

So stop complaining and focus on real issues like will the "grip of death" affect the next iPhone

 

[bobringer]

Refuse collectors?? Seriously?? Refuse collectors don't use their heads and most of them don't have the sort of education, experience and vision it takes to be CEO of Apple. There is absolutely ZERO comparison. I'm quite honestly shocked you would make such a comparison.

Using logic on socialists is not gonna work. They are certain everybody is equal and the world will be a much better place when everyone is treated that way.

Beyond your points is the fact that Cook is responsible for keeping a ship with 50,000 employees afloat. Of course the socialist thinks the refuse collector is no different than Cook. The refuse collector is just as important as Cook. Now... Tell that to the hard working engineers that rely on Cook's corporate governance to keep their jobs at all.

 

[wackymacky]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_5 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8L1 Safari/6533.18.5)



I wish people would read AND understand this before they post their knee-jerk reactions.

I can read and understand this. I think the point is: Does anyone person really deserve money.

To be honest though it is public company, and if it's board want to pay this, then so be it. If he stuffs up the shareholders will make him/them pay.

I wonder how people would react if the presendent was paid 10% of this. They would spew! funny really we value a man who makes shiny little play-things more than world leaders.

 

[bobringer]

Good move by Apple. Goes to show just how important Cook is for the company and the confidence the board has. Assuming the stock price stayed the same after 10 years, I wonder if the $383 million is equal to or more than the entire Apple payroll for 10 years.

I agree with you, but did you even attempt the math? About 50,000 employees. That would be an annual average salary of less than $800 per employee. I'm not sure, but if I had to guess... The average salary at apple is slightly more than $800 a year.

 

[AidenShaw]

Using logic on socialists is not gonna work.

Nor does using logic on anyone who bandies the term "socialist"....

 

[Tiggs]

Wow, he definitely deserves it though and at 38M per year, its still a big chunk. Keep in mind he also has other RSU grants that are still vesting. For instance, he got a 125,000 share grant just last year so thats another 12M per year(4yr vest). Plus, he'll probably get additional grants going forward. Won't be long and he'll be making over 100M per year total compensation.

 

[bobringer]

I would have not given him this at all, he's not worth it.
Did Jobs even get a package like this?

I would have given an across the board pay raise to all apple employees today.

This is just insane, 1 million shares plus 50 million in pay per year? Give it back to the normal employees. This is just stupid pay for one person. This pay package is like trying to create some mythical aspect for this guy and he will never get it from dangling money. He is no Jobs. Sorry this is just stupid.

ETA: the guys "lifestyle" is risky, so he may never collect any of those shares. Maybe this is to temp him to slow down his "lifestyle" and be less risky, so his health will remain ok.

Hmmm... I didn't realize there was such a contingent of socialist homophobes...

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Besides making good products what made Apple, Apple is the hype and Steve's ability to sell.

Not even close. Apple sells products because they make great products.

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That's allot of money and his family will want for nothing...

except for their daddy to have been around when they were growing up!

There are always trade offs!

Being there for my girls everyday is what I placed the highest importance on in life.

I guess his kids and grandchildren will have it both ways due to his sacrifices! That's allot of money to pass down to his children!

It looks like you really read up on Cook's bio. Good research.

Also looks like you're pretty sure you know how everybody should live their lives. Thanks for the unsolicited advice.

 

[Tiggs]

his salary is already 58 mil a year.

But even if it wasnt, $1 dollar a year (plus bonuses plus $380,000,000 in ten years) isn't bad, heck, if I was him I'd accept. 90% pay cut to 10c if I could keep the bonus!

No, his salary was only 800k lsat year. His total compensation was 58mil last year which comprises salary, vested stock, cash bonuses, etc. Salary and total compensation are different things and can vary greatly. Most of his earnings derive from outside his nominal salary base.

 

[bobringer]

How could anyone "deserve" a 3rd of a billion dollars? What could he possibly be doing with his days that justifies that? I wouldn't want to deny it to him, I am not a raging socialist or anything, but to say he deserves it? I don't get it.

One could argue that Apple would be a fraction of their size if not for Cook. Let's say (on the EXTREMELY conservative side) that Cook is responsible for $25 billion in shareholder value. Yeah... why would anybody want to give a fraction of that back to him to keep him from being poached by Google. Not to mention the livelihood of 50,000 employees depend on him.

The math here is not difficult.

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Can you please provide proof of such salary from said individuals?

Funny man asking a socialist to back up their facts. Don't forget Marx has told these people that the ends justify the means. That certainly includes lying on the interwebs.

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I think you're mistaking "revenue" for "profit".

No he's not. Apples revenue is well over $2 Billion per week at this point.

 

[Project]

He is a big part of the reason why Apple is the most valuable company in the world. A big part of the reason they have $80bn in the bank. In that respect, 400m over 10 years isn't that big of a deal.