Apple's Tim Cook awarded $378M in 2011, won't see most of it for years
Apple Chief Executive Tim Cook earned about $378 million in 2011, making him the highest-paid CEO in the U.S. based on one new analysis. But Cook won't be able to actually collect all of the money unless he stays at Apple for 10 years.
Cook's earnings last year were mostly from a one-time stock award of $376.2 million that extends over 10 years. In addition, his salary, perks and bonuses amounted to $1.8 million for the 12-month span, as highlighted by The New York Times.
While the Times suggested that Cook earned $1 million a day last year, the truth is he won't see most of the money for many years. The stock awarded to Cook in 2011 requires that he stay at the company for 10 years, which instead amounts to $103,000 a day if he were to fulfill that requirement, as noted by Philip Elmer-Dewitt at Apple 2.0.
In fact, Apple's own 2012 proxy statement filed with the U.S. Securities and Exchange Commission states that Cook's compensation should be viewed "over the 10-year vesting period and not solely as compensation for 2011."
While Cook was awarded $376.2 million in AAPL stock in 2011, he didn't see any of it last year. Instead, his annual salary was just $900,000, well less than the median total compensation of $14.4 million for U.S. CEOs last year, as reported by the Times.
If the total stock compensation is included, Cook's earnings in 2011 were well beyond second-place finisher Larry Ellison of Oracle Corp., who made $77.6 million last year. In third place was former Apple retail chief Ron Johnson, who made $53.3 million in his new role at U.S. retailer JC Penney.
In fourth on the list was Philippe Dauman, CEO of Viacom, who earned $43.1 million. Honeywell's David Cote took fifth with $35.3 million, and Stephen Chazen of Occidental Petroleum was sixth with $31.7 million.
In seventh was Bob Iger, Disney's chief executive, who earned $31.4 million in 2011. Last November, Iger joined Apple's board of directors, and he also worked closely with late Apple co-founder Steve Jobs on content deals, while the two presided over Disney's 2006 acquisition of Pixar.
Rounding out the top ten were Marathon Oil CEO Clarence Cazalot Jr. ($29.9 million), Ford Motor Company's Alan Mulally ($29.5 million), and News Corp. Chief Executive Rupert Murdoch ($29.4 million).
[ View article on AppleInsider ]
Comments
Oh my God! How will he ever be able to feed his family on 100,000 a day!!?!?
Just wanted to say it first. :-)
Given what he has done, Cook is underpaid !!
Given what he has done, Cook is underpaid !!
Having been one of about seven men responsible for creating $600 BILLION in worth for the company, just under 400 million is probably a little light, but just a little.
It's nice seeing a CEO's salary commensurate with his/her performance. A nice reprieve from all the useless dickheads working in the financial industry.
Ditto.
Given what he has done, Cook is underpaid !!
Seriously?
Jobs built the plan, the products, the timeline...
Kinda like Dad builds a new house himself and let's his little boy step up to put in the last nail and says "Good job Timmy, you built a beautiful house! "
That money should be given to the Jobs family...
Seriously?
Jobs built the plan, the products, the timeline...
Kinda like Dad builds a new house himself and let's his little boy step up to put in the last nail and says "Good job Timmy, you built a beautiful house! "
That money should be given to the Jobs family...
Actually its not for what he has done, but it is for what he will need to do over the next 10 years and its based on how well the shares perform. It is that amount in today's value in todays dollars. He has good incentive to ensure the company does well for the next 10 years...!
http://www.biblelife.org/stefansson1.htm
(don't be confused by the bible bit. This aint a religious experience.) Fascinating read for the adventurers amongst up. We do want Timmy around for a long while. Now how can we convince Larry to go vegan.
Seriously?
Jobs built the plan, the products, the timeline...
Kinda like Dad builds a new house himself and let's his little boy step up to put in the last nail and says "Good job Timmy, you built a beautiful house! "
That money should be given to the Jobs family...
What?! There is plenty of circumstantial evidence that Apple would have never been as efficient, and therefore as profitable, as it is without Tim Cook's efforts. It was Tim that masterminded the supply chain, not Jobs.
Jobs built the plan, the products, the timeline…
He did none of that. Jobs had ideas. Ive had designs. Serlet had code. Schiller marketed. Cook did everything that was required to make everything else actually possible.
Timboy looks pastie and wrinkly. He'd better get gobbling the pork and butter if he expects to be round to collect that money. The veggie wagon is a stinky pile to live on. Time Tim thought outside the Steve box.
He looks perfectly fine.
. . .He looks perfectly fine.
TS, Look carefully. The skin never lies.
What do you think?
TS, Look carefully. The skin never lies.
Looks like my skin. Am I about to die? My skin's a little more purple right now, but I'm sort of cold.
Looks like my skin. Am I about to die? My skin's a little more purple right now, but I'm sort of cold.
http://en.wikipedia.org/wiki/File:Ti...09_cropped.jpg (Sorry, don't know how to post pic)
TS, Tim is only 51 yeas old. I don't know how old you are but I enjoy your posts and hope they keep coming round for years to come. From how you write, I suspect you would enjoy the adventures of Vilhjalmur Stefansson.
Which instead amounts to $103,000 a day if he were to fulfill that requirement, as noted by Philip Elmer-Dewitt at Apple 2.0.
Never mind what the markets dictate, and how much money Apple made and generated beyond the company, no person is worth a hundred grand per day. If anyone thinks that they need to step back and re-calibrate their perspective. I am not saying this against TC or Apple, he deserves more than most, but that kind of money is silly. Its an academic exercise because who on earth can spend 100 grand per day. It is not, communism, anti capitalist, liberalism or anarchism - it is just common sense. Morally speaking... well... it certainly is debatable.
Never mind what the markets dictate, and how much money Apple made and generated beyond the company, no person is worth a hundred grand per day. If anyone thinks that they need to step back and re-calibrate their perspective. I am not saying this against TC or Apple, he deserves more than most, but that kind of money is silly. Its an academic exercise because who on earth can spend 100 grand per day. It is not, communism, anti capitalist, liberalism or anarchism - it is just common sense. Morally speaking... well... it certainly is debatable.
I know what you mean.
I look at a buddy of mine in the Bay Area who works for Apple. He's in his early 30's and can't afford to be able to buy a house for himself, so he continues to rent. Admittedly he has a good life, better than most, but seeing that huge amounts of what Tim Cook earns will just be saved, since nobody can spend that much (although I admit I would be willing to try!), surely it would be better for the wider economy if people like Cook were able to save less, and the extra money went to people who work for Apple and would actually put the money to work in the economy?
I don't intend this to be a criticism of Tim Cook in any way. He's clearly achieved a lot, but something seems wrong with the system at the moment, in my opinion.
I hope Tim can fill Steve's shoes. Only time will tell.
http://en.wikipedia.org/wiki/File:Ti...09_cropped.jpg (Sorry, don't know how to post pic)
TS, Tim is only 51 yeas old. I don't know how old you are but I enjoy your posts and hope they keep coming round for years to come. From how you write, I suspect you would enjoy the adventures of Vilhjalmur Stefansson.
I see nothing wrong with his skin. What I do see is someone who is a fitness nut with very low body fat. He would probably look a bit younger and his skin might be more elastic if he put on 10 pounds of fat. However, I bet his arteries look pretty good.
On topic I say good for Tim. I have no problems with what a successful person earns. The Ceo's who run a company into the ground and get golden parachutes however, should be used for Trap and Skeet practice.
. . . I have no problems with what a successful person earns. The Ceo's who run a company into the ground and get golden parachutes however, should be used for Trap and Skeet practice.
Last point, poignant, and I would even eat vegetables for an invite to watch the shoot.
Regarding my off-topic point on skin, and yours, re athletic and etc. Wouldn't this have as easily described Steve? Food is one of the most political topics. We want Tim around and healthy and enjoying his earnings for a long time.