Apple's Tim Cook banked $74M in 2013, topping all but one S&P 500 tech CEO

Posted:
in AAPL Investors edited April 2014
Apple Chief Executive Tim Cook took home $4.3 million in salary and incentives in 2013 and added another $69.6 million in vested stock options, continuing his reign as one of the highest-paid executives in Silicon Valley.

Tim Cook


Cook's $73.9 million windfall outpaced the $17.6 million collected by HP's Meg Whitman, Silicon Valley's third-place finisher, according to USA Today. Neither CEO stood a chance against Facebook chief Mark Zuckerberg's $3.9 billion payday, however, after the college dropout cashed in $3.3 billion worth of stock options.

The numbers change slightly when excluding stock options and grants from the calculation. Using only salary figures, Cook's $1.4 million handily beat out both Whitman and Zuckerberg, who took home just $1 each in 2013. Whitman also received a $260,000 performance bonus.

Though it would be exceptionally difficult to argue that Cook is overpaid -- Apple has recorded the best financial performances in its history under his watch -- some believe that lavish compensation packages such as his may come under pressure as the pay gap between top executives and everyday workers continues to widen.

"The extremes are getting bigger and run smack dab into the debate of income inequality," compensation consultant Alan Johnson told the publication. "Boards are quite concerned over how executive compensation will be perceived."

Johnson argues that boards should not shy away from large executive paydays just for image reasons, however. Instead, compensation should be set commensurate with the amount of shareholder value the executive creates.

By that measure, Cook should be paid even more.

Whitman took home approximately $3.4 million for every $1 billion in net income her company booked in 2013, while Zuckerberg brought in about $2.2 billion by the same formula. Cook, however, banked just $2 million.
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Comments

  • Reply 1 of 42
    SpamSandwichSpamSandwich Posts: 30,748member
    Cue the "CEOs are overpaid" and "share the wealth" trolls.
  • Reply 2 of 42
    Haters gonna hate.
  • Reply 3 of 42
    chandra69chandra69 Posts: 638member
    Quote:


    "The extremes are getting bigger and run smack dab into the debate of income inequality," 


    Nonsense.

  • Reply 4 of 42
    sflocalsflocal Posts: 4,434member

    I rarely (if ever) say anything to this level for a CEO since most are overpaid sloths that do nothing but milk companies dry, but Tim Cook?? That man has earned every single penny.  Keep up the good work!

  • Reply 5 of 42
    mutoneonmutoneon Posts: 51member
    How does this constitute Apple news? I couldn't care less how much money Tim Cook made, let alone anyone else.
  • Reply 6 of 42
    dasanman69dasanman69 Posts: 12,974member
    Cue the "CEOs are overpaid" and "share the wealth" trolls.

    They should all be like this guy.

    http://www.autonews.com/article/20130624/OEM02/130629943?template=mobile&X-IgnoreUserAgent=1
  • Reply 7 of 42
    richlrichl Posts: 2,213member
    Oracle isn't in the S&P 500?
  • Reply 8 of 42
    dasanman69dasanman69 Posts: 12,974member
    sflocal wrote: »
    I rarely (if ever) say anything to this level for a CEO since most are overpaid sloths that do nothing but milk companies dry, but Tim Cook?? That man has earned every single penny.  Keep up the good work!

    Agreed, and I can't argue much with stock option salaries either. Company does well then you'll be rewarded with a favorable stock price.
  • Reply 9 of 42
    macbootxmacbootx Posts: 35member
    Tim deserves every penny. As far as income equality and Apple go, they need to do a better job when it comes to retaining people in their retail stores that have been there for five years or more. These are people that are good at what they do and either realize they can get paid more elsewhere with their experience or get recruited by other employers.
  • Reply 10 of 42
    mdriftmeyermdriftmeyer Posts: 7,215member

    The salary, sans his bonus from stock, is reasonable.

     

    His entire stock value was predicated on performance and thus he either produces results or does not. He's not guaranteed those options, irregardless of company performance, unless so many Fortune 1000 CEOs.

  • Reply 11 of 42
    macbootxmacbootx Posts: 35member
    Tim deserves every penny. As far as income equality, Apple needs to try harder to keep people that have worked for their retail stores for five years or longer. These are people that are good at what they do and either realize they can get paid more elsewhere or get recruited by other companies.
  • Reply 12 of 42
    mutoneon wrote: »
    How does this constitute Apple news? I couldn't care less how much money Tim Cook made, let alone anyone else.

    AI posted this just to get a reaction out of Constable Odo. Watch what happens next. :)
  • Reply 13 of 42
    jungmarkjungmark Posts: 6,647member
    AI posted this just to get a reaction out of Constable Odo. Watch what happens next. :)

    Nah, this is too direct. Odo spews his nonsense on every other post.
  • Reply 14 of 42
    mvigodmvigod Posts: 172member
    And why not. I mean the stock has done spectacular as the company flatlines revenues the last couple years. Why shouldn't he make 70 million. BTW when those vested did he hold any of them? In the past all top apple execs dump their stock. They have no interest in holding onto any of it. They (the top tier executives) even rejected a shareholder proposal requiring them to hold onto significant amount of apple stock. Wonder why?

    They all have 10's if not 100's of millions in cash from previously dumped stock. Why not hold some new vested shares with the future so bright? Or do they not see the future so bright...
  • Reply 15 of 42
    sdw2001sdw2001 Posts: 16,929member
    Quote:

    Originally Posted by SpamSandwich View Post



    Cue the "CEOs are overpaid" and "share the wealth" trolls.

     

    Nah, they'll be silent.  That was my first thought.  Where is Obama.  Where is Harry Reid?  Where is Pelosi?  Where is Schumer?  Durbin?  Where are all the "progressives" who rail against executive compensation?  Oh wait...it doesn't count because Apple's corporate culture is in agreement with their politics.  

  • Reply 16 of 42
    Quote:

    Originally Posted by mutoneon View Post



    How does this constitute Apple news? I couldn't care less how much money Tim Cook made, let alone anyone else.

    Please forward your approved Apple articles list asap to Apple Insider so they can get this fixed right away

  • Reply 17 of 42
    dysamoriadysamoria Posts: 1,958member
    No singe person does work that warrants such pay.

    And don't call Obama progressive. Corporate, maybe...
  • Reply 18 of 42
    dunksdunks Posts: 1,233member
    I'm conflicted. My brain's left hemisphere thinks it's obscene that anyone can get paid that amount my right side knows with Tim Cook it's worth every penny.

    I'll think I'll have to revise it to it's obscene when bad CEO's get paid that amount.
  • Reply 19 of 42
    irelandireland Posts: 17,547member
    [QUOTE]By that measure, Cook should be paid even more.[/QUOTE]

    Is that based on the renowned scientific Zuckerberg/Whitman metric?
  • Reply 20 of 42
    apple ][apple ][ Posts: 8,360member
    Quote:

    Originally Posted by mutoneon View Post



    How does this constitute Apple news? I couldn't care less how much money Tim Cook made, let alone anyone else.

     

    What are you talking about?:no:

     

    This is an Apple centric site frequented by many Apple shareholders. Of course this is news that is relevant to all those who don't live in a cave.

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