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Apple's Tim Cook awarded $378M in 2011, won't see most of it for years

post #1 of 41
Thread Starter 
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).

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post #2 of 41
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.
post #3 of 41
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.


Oh my God! How will he ever be able to feed his family on 100,000 a day!!?!?

Just wanted to say it first. :-)
post #4 of 41
And Cook has requested that his unvested stock not earn any dividends (announced a few days ago). Unlike other managers at Apple who will earn dividends (although not receive them until the stock vests).

Given what he has done, Cook is underpaid !!
post #5 of 41
Quote:
Originally Posted by AppleGreen View Post

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.

Originally posted by Relic

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Originally posted by Relic

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post #6 of 41
Quote:
Originally Posted by macinthe408 View Post

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.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #7 of 41
Quote:
Originally Posted by AppleGreen View Post

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...
post #8 of 41
Quote:
Originally Posted by skyzlmt View Post

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...!
post #9 of 41
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.
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.

When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

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When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

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post #10 of 41
Quote:
Originally Posted by skyzlmt View Post

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.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #11 of 41
Quote:
Originally Posted by skyzlmt View Post

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.

Quote:
Originally Posted by mhikl View Post

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.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #12 of 41
most of us won't see any of it for aeons.
post #13 of 41
Quote:
Originally Posted by Tallest Skil View Post

. . .He looks perfectly fine.

TS, Look carefully. The skin never lies.

When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

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When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

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post #14 of 41
He has not earned this money. He has earned the right to earn it. If he walks away he leaves all of it on the table. sounds like a multi year pay package that actually makes sense. If Apple does the same over the next 5 years as it did over the last 5 he will receive far more than $378 million. A good estimate is a 10 fold increase. That would make the first half of the options worth $1.89 Billion. Of course Apple would be worth 3.5 trillion $ and I would think it is quite possible that his total earnings from Apple will be greatly in excess of this amount. He does have options vesting from his last 10 years of working near the top of Apple. Another 5 years and 10 fold growth would make the remaining options worth 18.9 Billion dollars. Apple would then be worth 35 Trillion Dollars. These are stupid big numbers, but this is the track Apple is on. If it is done this way, we could list Mr Cook as the least expensive equity creator in history. No cash necessary, just .1% of outstanding stock and poof you get the largest economic growth story in the history of mankind. Sounds like a pretty good deal for Apples shareholders if you ask me.

What do you think?
post #15 of 41
Quote:
Originally Posted by mhikl View Post

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.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #16 of 41
Quote:
Originally Posted by Tallest Skil View Post

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.

When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

Reply

When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

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post #17 of 41
Quote:
Originally Posted by skyzlmt View Post

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.
post #18 of 41
Quote:
Originally Posted by paxman View Post

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.
post #19 of 41
Apple will be coasting on Steve Jobs creativity for the next 5 years. If Mr. Cook can't replace the innovation SJ brought to Apple then his millions in stock won't be worth as much when he's fully vested in 10 years.

I hope Tim can fill Steve's shoes. Only time will tell.
post #20 of 41
Quote:
Originally Posted by mhikl View Post

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.
Crying? No, I am not crying. I am sweating through my eyes.
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Crying? No, I am not crying. I am sweating through my eyes.
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post #21 of 41
Quote:
Originally Posted by bigdaddyp View Post

. . . 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.

When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

Reply

When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

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post #22 of 41
Why all the hate on Tim? Steve hand picked him after years of observation (so as not to repeat the Sculley mistake). Steve entrusted the company to him when he was sick in 2011 and by all measures Tim Cook has done well.

Future innovation? That remains to be seen of course. But bear in mind, not everything Steve touched turned to gold. There were missteps and misfires with him too.

Concern trolls gotta be concerned I guess.
post #23 of 41
Quote:
Originally Posted by mhikl View Post

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.
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.

I guess I would give your post some validity if I knew that A) you were a health professional; B) that you had given TC A thorough examination; and C) you weren't making some wild observation based on one photo.

You sound like a troll.
post #24 of 41
Quote:
Originally Posted by Psych_guy View Post

Why all the hate on Tim? Steve hand picked him after years of observation (so as not to repeat the Sculley mistake). Steve entrusted the company to him when he was sick in 2011 and by all measures Tim Cook has done well.

Future innovation? That remains to be seen of course. But bear in mind, not everything Steve touched turned to gold. There were missteps and misfires with him too.

Concern trolls gotta be concerned I guess.

What hate on Tim?
post #25 of 41
Quote:
Originally Posted by Psych_guy View Post

Steve entrusted the company to him when he was sick in 2011

AND in 2004 when he was sick the first time. Most people don't remember that.

Quote:
Originally Posted by paxman View Post

What hate on Tim?

Diminishment of his accomplishments and work at Apple and claiming that decisions made since Steve's passing were "terrible" and "Tim's fault".

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #26 of 41
Quote:
Originally Posted by macinthe408 View Post

It's nice seeing a CEO's salary commensurate with his/her performance...

That sounds like sarcasm!...

per year Tim Cook is making perhaps 2 million... while the others are making 10 times that...
but apple is bigger than those other companies (in market cap)

so I would say that he is NOT getting a CEO's salary commensurate with his/her performance; HE is being Paid LESS than he is worth IMO.

Better to have job you love (and perform in a stellar manner) than one you hate

only if you include the stock bonus after 10 years, will he earn effectively what they make.
(but the others also get stock options too)
post #27 of 41
Quote:
Originally Posted by PaulMJohnson View Post

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.

Cost of living in Silicon Valley
The cost of living in Silicon Valley is significantly higher than other metropolitan areas, even NYC. The cost of basic necessities is 62% higher than elsewhere, across the board.

Average cost for housing, (about $775,000 to $1mil depending on location for a modest single-family home) costs almost 3X the national average. Apartment rentals are also insane - 76 percent more than the US average.

Tech workers in Silicon Valley earn roughly $92,300 a year, compared to counterparts in New York City requiring $74,800 to match the same standard of living. Tech workers in cities like Dallas or Philadelphia, require just half of those in Silicon Valley for a comparable standard of living.

California taxes resident workers more heavily too - those annual salaries in excess of $46,776 paying 9.3 percent in state income taxes alone.

YOU may not be able to spend that much, but given the cost of living in the Valley, and other lifestyle considerations, TC is fairly modestly compensated for the work he does.
If you are going to insist on being an ass, at least demonstrate the intelligence to be a smart one
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If you are going to insist on being an ass, at least demonstrate the intelligence to be a smart one
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post #28 of 41
Quote:
Originally Posted by PaulMJohnson View Post

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?

There are quite a few assumptions built into that suggestion.

Tim is known as big donor to his school (Auburn IIRC). If he donates a lot of $, that may well do more good than taking it away from him & dividing it up amongst others.

Also, maybe making a lot of $ is what drove Tim to work so hard for so long. If his compensation was capped at a certain amount $1,000,000 per year (or whatever # you pick,) once he reaches that point, where's the incentive to work any harder. It's undeniable that much of the value of Apple today is built in from the management of their supply chain, which was Tim's domain. I'm sure that his job is much different than yours or mine & that he works a lot more than 40 hours/week. If his compensation was lowered, maybe he would just say "I've got enough $, why continue to work" in which case, Apple would have lost the special talents he brought to the position. which would have negatively impacted everyone.

Plus the whole argument about if spending is really better for 'us' as a whole than savings is not cut & dried. There is definitely value to both.
post #29 of 41
I don't care how well Apple is doing, it's still too much money.

Unadulterated American greed is what got us in this financial mess in the first place.

Quote:
Originally Posted by macinthe408 View Post

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.
post #30 of 41
Quote:
Originally Posted by rtm135 View Post

Unadulterated American greed is what got us in this financial mess in the first place.

Spectacular stupidity and a catastrophic lack of regulation is what got us into this financial mess in the first place.

Greed is not necessarily a bad thing, as long as structures are in place to stop said greed causing damage to innocent bystanders. That's what was missing.

Driving incredibly fast is not inherently a bad thing, but if you do it in built up areas, there is a good chance innocent bystanders will get help, hence we have speed limits........
post #31 of 41
Quote:
Originally Posted by Psych_guy View Post

I guess I would give your post some validity if I knew that A) you were a health professional; B) that you had given TC A thorough examination; and C) you weren't making some wild observation based on one photo.

You sound like a troll.

He is quite right. The whole anti-saturated-fat and cholesterol campaign the medical fraternity has been running for years is not based on any scientific evidence and the latest evidence regarding cholesterol is that there is no evidence it does the harm that it has been accused of.
post #32 of 41
Quote:
Originally Posted by cnocbui View Post

He is quite right. The whole anti-saturated-fat and cholesterol campaign the medical fraternity has been running for years is not based on any scientific evidence and the latest evidence regarding cholesterol is that there is no evidence it does the harm that it has been accused of.

Really? Then I guess you know more than the AMA and the American Heart Association - both of which think there's a strong link.

So what's your evidence?
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #33 of 41
Quote:
Originally Posted by Tallest Skil View Post

Diminishment of his accomplishments and work at Apple and claiming that decisions made since Steve's passing were "terrible" and "Tim's fault".

Ok, generally, perhaps, and mostly by people who really don't 'get' Apple 2012.

I thought he meant this thread. Not a lot of hate... Yet.
post #34 of 41
Why is this "story" reported over and over again? Wasn't this information clear the first 1,000 times?
post #35 of 41
This guys earns more in an hour than most people earn in a year!
post #36 of 41
Thats the Gayest salary I have ever seen.

Edit. (insert sarcasm here).
An Apple man since 1977
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An Apple man since 1977
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post #37 of 41
Quote:
Originally Posted by mhikl View Post

The skin never lies.

That has to be the creepiest thing I've heard in a long while.....
post #38 of 41
I find it kind of funny how the previous ceo was paid only $1.00 but the current ceo is going to get $400 million. If I remember right most of the success & profits are still all from products Steve was responsible for. Talk about taking credit for another guys work.
post #39 of 41
Quote:
Originally Posted by Lancelot9201 View Post

I find it kind of funny how the previous ceo was paid only $1.00 but the current ceo is going to get $400 million. If I remember right most of the success & profits are still all from products Steve was responsible for. Talk about taking credit for another guys work.

1) This is about what Cook was awarded in a one-time stock package, which Jobs also received. As noted in the article his salary was around $1.8 million for 2011.

2) Cook was instrumental in making Apple the success it is. It's easier to argue that Apple would be much the lesser without Cook. Why you think Cook doesn't deserve a performance-based incentive is beyond me but he's certainly been a valuable member of Apple and I'm quite happy to see him at the helm now that Jobs has passed.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #40 of 41
Quote:
He'd better get gobbling the pork and butter if he expects to be round to collect that money

Yeah, lots of pork and butter are sure ways to extend the life of a 51 year
old male.
and that would definitely make him round as you wrote.
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