Tim Cook's 2020 pay of $14.7M is about average for a S&P 500 CEO

Posted:
in AAPL Investors edited June 2
Apple CEO Tim Cook's compensation for heading up the most valuable company in the United States is relatively modest, placed in 171st position in rankings of S&P 500 CEO earnings.




Apple is at the top of the Standard & Poor's 500 rankings in terms of market capitalization but CEO Tim Cook's direct pay from the company is far lower than many others in the list.

Compiling the compensation data for 416 CEOs from the 500 companies on that list, Tim Cook's total pay for 2000 was $14,769,259, according to the Wall Street Journal. Despite seeming high, and also rising 28% from his 2019 compensation, this only puts Cook in position 171 on the list.

While the rankings indicate Cook is getting paid similarly to other major CEOs, it's not the entire story. Given that many CEOs, including Cook, are stockholders in the company they lead, their salary can become only a small part of their total overall income.

For example, a similar report from Bloomberg in 2019 reported Cook's pay at $133.7 million for the year. While his starting salary for that year was $3 million and he also had $7.7 million in bonuses and $884,000 in perks, he also received $122.2 million in stock awards.

Such stock earnings mean that Cook and other CEOs can earn far more than their salary. In Cook's case, his personal net worth crossed the $1 billion mark in August 2020.

Cook trails far behind Paycom CEO Chad R. Richison, who topped the list with $211 million in total pay, followed by Shantanu Narayen of Adobe in third with $45 million, the $23 million earned by Daniel H. Schulman of Paypal in 49th place, and IBM CEO Arvind Krishna in 122nd with $17 million.

At the other end of the scale, Warren Buffet is in 413rd place with $380,328, Jack Dorsey of Twitter is in 414 with a token $1 salary, and Elon Musk is in last with $0.

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Comments

  • Reply 1 of 17
    bvgkbvgk Posts: 9member
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    dysamoria
  • Reply 2 of 17
    lkrupplkrupp Posts: 9,637member
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    Whatever. Until otherwise this is a capitalist economy, not a socialist one where everyone’s pay is regulated according to some bullshit ‘fairness’ doctrine conjured up by god knows what committee. 
    yojimbo007BeatsCluntBaby92jony0
  • Reply 3 of 17
    lmasantilmasanti Posts: 134member
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    He is doing that! He made Apple the most valuable company earning just cents…

    It seems to me that there are 170 overpaid CEOs!
    yojimbo007baconstangBeatsjony0
  • Reply 4 of 17
    bvgkbvgk Posts: 9member
    lkrupp said:
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    Whatever. Until otherwise this is a capitalist economy, not a socialist one where everyone’s pay is regulated according to some bullshit ‘fairness’ doctrine conjured up by god knows what committee. 
    i am talking about setting an example for other CEOs.
    it's not right on the part of CEOs to make 1000+ times average employee pay .... otherwise, our communist president and his party are asking for higher and higher taxes in the name of fairness. 
    so, CEOs like Tim can set an example and not give an excuse to the politicians from dismantling the whole system. 
  • Reply 5 of 17
    sflocalsflocal Posts: 5,823member
    bvgk said:
    lkrupp said:
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    Whatever. Until otherwise this is a capitalist economy, not a socialist one where everyone’s pay is regulated according to some bullshit ‘fairness’ doctrine conjured up by god knows what committee. 
    i am talking about setting an example for other CEOs.
    it's not right on the part of CEOs to make 1000+ times average employee pay .... otherwise, our communist president and his party are asking for higher and higher taxes in the name of fairness. 
    so, CEOs like Tim can set an example and not give an excuse to the politicians from dismantling the whole system. 
    Cry me a river.  If anything, this shows that most other CEO's are OVERPAID.  I have zero problems with TC's compensation.  Under his leadership, I loaded up on AAPL and am beyond grateful.  Did you not do that?  

    Tim Cook's tax situation is not the problem.  Our government's never-ending thirst to spend more than it receives is the problem.  Our government does not have a revenue problem.  It has a spending problem, regardless of who is in the White House.
    sdw2001dewmejony0
  • Reply 6 of 17
    sdw2001sdw2001 Posts: 17,747member
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    I don't see what "setting an example" would accomplish.  It's not like Tim Cook making that kind of money affects Apple's pay scale.  That's what drives me crazy....yes, some CEO pay is obscene.  But even if you have someone making 100m and they cut their pay to 500K, what does that accomplish?  Take Apple.  They have 147,000 employees.  If Tim Cook earned zero dollars and every dime of his salary and stock options went to employees, each employee would get less than $1000 raise.  If he just gave up his salary, each employee would get $100.  

    This process can be applied to any business.  The CEOs making obscene money run businesses that have tens of thousands of employees.  Even if CEOs followed suit with Tim's hypothetical "example," what it is accomplishing...good optics? Making people feel better?  

    sflocal:

    Tim Cook's tax situation is not the problem.  Our government's never-ending thirst to spend more than it receives is the problem.  Our government does not have a revenue problem.  It has a spending problem, regardless of who is in the White House.

    Yes.  Exactly.  Neither party cares about debt and deficits.  Worse, there is a movement to cause inflation by overspending because in addition to reducing purchasing power, it reduces the value of the outstanding debt.  

    BeatsCluntBaby92
  • Reply 7 of 17
    sdw2001sdw2001 Posts: 17,747member
    bvgk said:
    lkrupp said:
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    Whatever. Until otherwise this is a capitalist economy, not a socialist one where everyone’s pay is regulated according to some bullshit ‘fairness’ doctrine conjured up by god knows what committee. 
    i am talking about setting an example for other CEOs.
    it's not right on the part of CEOs to make 1000+ times average employee pay .... otherwise, our communist president and his party are asking for higher and higher taxes in the name of fairness. 
    so, CEOs like Tim can set an example and not give an excuse to the politicians from dismantling the whole system. 
    The radicals who want to dismantle private enterprise aren't going to stop because Tim Cook reduces his pay.  Moreover, I completely oppose the precedent it would set.  You'd have a private citizen so terrified of government that he doesn't dare make too much money.  Sorry, I don't play that.  Double barrel middle finger to government on telling us how much money we can make.   
    bvgkBeatsCluntBaby92
  • Reply 8 of 17
    bvgkbvgk Posts: 9member
    sflocal said:
    bvgk said:
    lkrupp said:
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    Whatever. Until otherwise this is a capitalist economy, not a socialist one where everyone’s pay is regulated according to some bullshit ‘fairness’ doctrine conjured up by god knows what committee. 
    i am talking about setting an example for other CEOs.
    it's not right on the part of CEOs to make 1000+ times average employee pay .... otherwise, our communist president and his party are asking for higher and higher taxes in the name of fairness. 
    so, CEOs like Tim can set an example and not give an excuse to the politicians from dismantling the whole system. 
    Cry me a river.  If anything, this shows that most other CEO's are OVERPAID.  I have zero problems with TC's compensation.  Under his leadership, I loaded up on AAPL and am beyond grateful.  Did you not do that?  

    Tim Cook's tax situation is not the problem.  Our government's never-ending thirst to spend more than it receives is the problem.  Our government does not have a revenue problem.  It has a spending problem, regardless of who is in the White House.
    Yesss, Govt Spending is THE problem .... and this discussion is about taking away that one excuse the communist politicians keep using.

    but, Tim could still set an example for other CEOs with his pay while also making money for shareholders .... just like he is helping Apple make money while striving at being carbon neutral and striving for better labor practices in China.
  • Reply 9 of 17
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    His base pay is 300k, the remainder is various bonus and other compensation that includes stock that vests annually, Apple stock almost double in 2020 which would have been a big diver in total income. 
  • Reply 10 of 17
    bvgkbvgk Posts: 9member
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    His base pay is 300k, the remainder is various bonus and other compensation that includes stock that vests annually, Apple stock almost double in 2020 which would have been a big diver in total income. 
    I think you meant to say 3M base pay 
    (https://www1.salary.com/Tim-Cook-Salary-Bonus-Stock-Options-for-apple-inc.html)
    muthuk_vanalingam
  • Reply 11 of 17
    mknelsonmknelson Posts: 864member
    Communist? You keep using that word. I don't think it means what you think it does.  :D
    baconstangdysamoriafastasleep
  • Reply 12 of 17
    yojimbo007yojimbo007 Posts: 1,149member
    lmasanti said:
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    He is doing that! He made Apple the most valuable company earning just cents…

    It seems to me that there are 170 overpaid CEOs!
    BULLS EYE
  • Reply 13 of 17
    sflocalsflocal Posts: 5,823member
    bvgk said:
    sflocal said:
    bvgk said:
    lkrupp said:
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    Whatever. Until otherwise this is a capitalist economy, not a socialist one where everyone’s pay is regulated according to some bullshit ‘fairness’ doctrine conjured up by god knows what committee. 
    i am talking about setting an example for other CEOs.
    it's not right on the part of CEOs to make 1000+ times average employee pay .... otherwise, our communist president and his party are asking for higher and higher taxes in the name of fairness. 
    so, CEOs like Tim can set an example and not give an excuse to the politicians from dismantling the whole system. 
    Cry me a river.  If anything, this shows that most other CEO's are OVERPAID.  I have zero problems with TC's compensation.  Under his leadership, I loaded up on AAPL and am beyond grateful.  Did you not do that?  

    Tim Cook's tax situation is not the problem.  Our government's never-ending thirst to spend more than it receives is the problem.  Our government does not have a revenue problem.  It has a spending problem, regardless of who is in the White House.
    Yesss, Govt Spending is THE problem .... and this discussion is about taking away that one excuse the communist politicians keep using.

    but, Tim could still set an example for other CEOs with his pay while also making money for shareholders .... just like he is helping Apple make money while striving at being carbon neutral and striving for better labor practices in China.
    Are you seriously believing your "communist" rhetoric?  

    When the Democratic-led government is blowing money it doesn't have on programs, it's "communist".  When the Republic-led government blows money it doesn't have, what's that?  "Patriotic"?? 

    I don't think you really know what "communist" really means.
    baconstangmuthuk_vanalingamdysamoriafastasleep
  • Reply 14 of 17
    BeatsBeats Posts: 2,643member
    Now post Tim Sweeney’s pay and embarrass his a**!

    He most likely makes over 100m/year.


    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.

    That’s way too little. He deserves so much more for being the CEO of the most successful company in the world which he’s help make that successful.

    Do you think Tim Weenie and other CEOs are gonna say “oh crap!” and cut their pay in half because Tim Cook set an example?
  • Reply 15 of 17
    dysamoriadysamoria Posts: 3,430member
    bvgk said:
    lkrupp said:
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    Whatever. Until otherwise this is a capitalist economy, not a socialist one where everyone’s pay is regulated according to some bullshit ‘fairness’ doctrine conjured up by god knows what committee. 
    i am talking about setting an example for other CEOs.
    it's not right on the part of CEOs to make 1000+ times average employee pay .... otherwise, our communist president and his party [...]
    FFS. Do you even know what communism is?
  • Reply 16 of 17
    dysamoriadysamoria Posts: 3,430member
    sdw2001 said:
    bvgk said:
    lkrupp said:
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    Whatever. Until otherwise this is a capitalist economy, not a socialist one where everyone’s pay is regulated according to some bullshit ‘fairness’ doctrine conjured up by god knows what committee. 
    i am talking about setting an example for other CEOs.
    it's not right on the part of CEOs to make 1000+ times average employee pay .... otherwise, our communist president and his party are asking for higher and higher taxes in the name of fairness. 
    so, CEOs like Tim can set an example and not give an excuse to the politicians from dismantling the whole system. 
    The radicals who want to dismantle private enterprise aren't going to stop because Tim Cook reduces his pay.  Moreover, I completely oppose the precedent it would set.  You'd have a private citizen so terrified of government that he doesn't dare make too much money.   [...]
    Are you a multimillionaire or billionaire?

    No?

    Then none of it is about you.

    I notice no one ever says “radical capitalist” or “capitalist extremist”, but that’s EXACTLY what is going on when executives makes 1000+ times the income of their average employees.
    muthuk_vanalingam
  • Reply 17 of 17
    fastasleepfastasleep Posts: 5,843member
    sdw2001 said:
    bvgk said:
    lkrupp said:
    bvgk said:
    why is not just $500k , which would have been 5 or 6 times average Apple employee pay.
    Tim has an opportunity to set an example for other CEOs.
    Whatever. Until otherwise this is a capitalist economy, not a socialist one where everyone’s pay is regulated according to some bullshit ‘fairness’ doctrine conjured up by god knows what committee. 
    i am talking about setting an example for other CEOs.
    it's not right on the part of CEOs to make 1000+ times average employee pay .... otherwise, our communist president and his party are asking for higher and higher taxes in the name of fairness. 
    so, CEOs like Tim can set an example and not give an excuse to the politicians from dismantling the whole system. 
    The radicals who want to dismantle private enterprise aren't going to stop because Tim Cook reduces his pay.  Moreover, I completely oppose the precedent it would set.  You'd have a private citizen so terrified of government that he doesn't dare make too much money.  Sorry, I don't play that.  Double barrel middle finger to government on telling us how much money we can make.   
    Lol nobody is doing that though. Also, aren’t you a teacher? Something tells me you’re unaffected by the proposed tax increases, which really aren’t radical if you pay any attention at all to history:


    jony0
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