Tim Cook's Compensation Was Comparatively Modest Among Highest-Paid CEOs of 2020

[MacRumors]

Apple CEO Tim Cook's 14 million dollar pay in 2020 was relatively modest, compared to other S&P 500 CEOs, according to the Wall Street Journal.

In its annual ranking of CEO pay and compensation, the Wall Street Journal revealed that Tim Cook earned $14,769,259 last year, which is only slightly more than the median $13.4 million pay across the Standard and Poor's 500 (S&P 500) index. The Wall Street Journal also noted that Apple's median employee pay is $57,783.

Apple tops the entire S&P 500 with its value exceeding more than two trillion dollars, so it is surprising that Cook's pay is comparatively modest. Cook's pay rank is the 171st highest out of the S&P 500 CEOs, even though Apple makes up six percent of the entire index.

An increasing number of CEO compensation packages are tied to stocks as boards look to tie executive pay to the fortunes of company shareholders. Although Apple's one-year return for shareholders was 109 percent in 2020, Cook's pay only increased by 28 percent.

Over the course of 2020, Cook's net worth climbed to over one billion dollars, according to calculations from Bloomberg.

The highest-paid CEO was Paycom Software's Chad Richison, who earned more than $200 million. Seven CEOs were given compensation valued at more than $50 million last year, compared with just two in 2019 and three in 2018. Twenty-four S&P 500 CEOs made less than five million dollars last year, including Tesla's Elon Musk, who reported zero pay, and Twitter's Jack Dorsey, who earned just $1.40.

Article Link: Tim Cook's Compensation Was Comparatively Modest Among Highest-Paid CEOs of 2020

 

[BeefCake 15]

Well deserved!

 

[dapa0s]

Man I hope he stays at Apple for as long as possible, great CEO!

 

[fwmireault]

500 CEOs made less than five million dollars last year, including Tesla's Elon Musk, who reported zero pay, and Twitter's Jack Dorsey, who earned just $1.40.

Poor Jack Dorsey. He can’t even subscribe to his own 3$/month Twitter Blue :’(

 

[Kung gu]

Paycom Software's Chad Richison, who earned more than $200 million

why?
edit: dw he is the founder

 

[Naraxus]

Apple overpaid by $14,769,258....

 

[guzhogi]

Apple's median employee pay is $57,783.

For a company worth about $2 trillion and brings in $billions in profit every year, that’s actually pretty sad.

 

[Sasparilla]

Would have expected as much, just based on the aspects of his personality that we see (which are quite good). He has definitely been an excellent CEO and Job's chose very wisely.

The rest of the entire tech industry is pretty much all in on data mining their customers for everything they've got - and would love Apple's focus to change there. So the longer he stays at the helm, the better.

 

[Techwatcher]

For a company worth about $2 trillion and brings in $billions in profit every year, that’s actually pretty sad. Especially (correct me if I’m wrong) considering its headquarters is in a place with a high cost of living

I believe this includes everything like the retail workers around the world. This isn't just HQ.

 

[BvizioN]

Only 1.16 million a month? Poor Tim...!!

 

[DekuBleep]

Is that just his cash pay or does it include the stock options? I mean he is worth $1b.

 

[Minxy]

Is that really all he got?

Considering Apple made $23.6 billion in profit for the last quarter the company should just give him a lump sum of $1 billion as bonus per year as it wouldn't be happening without him. I'm not even joking.

 

[Moakesy]

Compare that to Denise Coats, of Bet365, who is the highest paid person in the UK.

Last years' salary? £469 million or in dollar terms...roughly $664m !!

She earns more than the rest of the FTSE 100 bosses combined. You gotta ask who is worth $1.8m PER DAY !!

But well done to Tim....whilst he earns a lot, he has brought a lot of value to Apple stock.

 

[guzhogi]

I believe this includes everything like the retail workers around the world. This isn't just HQ.

Even then, less than $58,000 as a median for all employees? Ignoring Tim Cook, other c-level and high-level executives, all of which probably make $millions in salary and benefits a year, that means the median for everyone else even less.

 

[manu chao]

For a company worth about $2 trillion [...] that’s actually pretty sad.

How does size factor much into this? Should, eg, doubling the number of Apple Stores lead to an increase in average pay for Apple Store employees?

 

[bbplayer5]

What he has done since Steve Jobs passed away, has been nothing short of astounding.

 

[I7guy]

Apple overpaid by $14,769,258....

I'm sure Apple disagrees with you.

 

[manu chao]

Even then, less than $58,000 as a median for all employees? Ignoring Tim Cook, other c-level and high-level executives, all of which probably make $millions in salary and benefits a year, that means the median for everyone else even less.

How much the C-suite earns has zero effect on the median salary. It only affects the average salary.

 

[GeoStructural]

For a company worth about $2 trillion and brings in $billions in profit every year, that’s actually pretty sad. Especially (correct me if I’m wrong) considering its headquarters is in a place with a high cost of living

Those in the $57.000 range may want to get together and start a company, invent some technologies too, design processors or new metal alloys… what do you say?

I have heard this narrative so much lately and I do not support it. I am sure Apple pays above market compensation, some positions just deserve more or less pay, and that is how it is.

This is “average” salary and probably accounts for different geographic locations and positions.

 

[citysnaps]

For a company worth about $2 trillion and brings in $billions in profit every year, that’s actually pretty sad. Especially (correct me if I’m wrong) considering its headquarters is in a place with a high cost of living

Salaries in Silicon Valley, where Apple's HQ is located, are considerably higher.

Apple employs roughly 147,000 employees worldwide, many in areas and countries where living costs are not as high as in Silicon Valley.

 

[manu chao]

Is that just his cash pay or does it include the stock options? I mean he is worth $1b.

It does include stock options (but I am not sure if it only includes the stock options that vested this year). However, all 'income' from Apple stock he already owned at the start of 2020 (dividends and increase in stock price) counts as investment income and not job compensation.

 

[manu chao]

Is that really all he got?

Considering Apple made $23.6 billion in profit for the last quarter the company should just give him a lump sum of $1 billion as bonus per year as it wouldn't be happening without him. I'm not even joking.

I have the impression that Cook doesn't care that as much about his personal wealth as he cares about Apple's wealth.

 

[citysnaps]

Right here.

A company worth over two trillion dollars could afford to pay their employees over $65K a year.

Are you willing to pay significantly higher prices for Apple iPhones, iPads, computers, and services in order to make that possible.

 

[citysnaps]

I have the impression that Cook doesn't care that as much about his personal wealth as he cares about Apple's wealth.

Spot on. He lives a relatively modest life.

 

[jimbobb24]

Wow, love him or hate him he is insanely underpaid. He creates more value and profit for his organization than the top 10 NBA, NFL, and MLB stars combined and makes less than the average one of them. He creates more revenue than the top 10 actors, pop stars, and YouTubers combined. Thankfully he has other forms of compensation beside his base pay. Many of these CEOs do or else this would be a major societal failure.