Apple shareholder group urges a no vote on CEO Tim Cook's $99M pay package

Posted:
in General Discussion
An Apple investor advisory group is recommending that shareholders shoot down CEO Tim Cook's proposed $99 million compensation package, citing "significant concern."

Apple CEO Tim Cook
Apple CEO Tim Cook


Institutional Shareholder Services on Wednesday told its clients to vote against Cook's pay and bonuses package. In a letter seen by The Financial Times, ISS said there was a "significant concern" with the stock award given to Cook in 2021 -- the CEO's first since 2011.

Throughout 2021, Cook was awarded stock worth $82 million. The executive's pay package also includes $630,630 in personal security costs and $712,488 for a private jet. ISS says the amount "significantly exceed" awards given by comparable companies.

Apple's Board of Directors, on the other hand, has recommended shareholders approve Cook's compensation package. Shareholders generally follow the board's recommendation, making the ISS letter to clients mostly performative.

The ISS last opposed an Apple compensation package in 2015. The group has also made other waves among Apple shareholders in the past. In 2011, it called for Apple to disclose a succession plan given then-CEO Steve Jobs' health at the time. The ISS also questioned Jobs' place on the Disney Board of Directors.

With Cook at the helm, Apple has seen significant growth and has hit major milestones. For example, Apple was the first publicly traded company to hit a $1 trillion market capitalization in 2018 and a $2 trillion market cap in 2020. Apple briefly eclipsed the $3 trillion valuation in 2022. In just the last two quarters, Apple has also broken revenue records.

Apple's annual shareholder meeting is scheduled for Friday, March 4. It will be held in a virtual format.

Read on AppleInsider
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Comments

  • Reply 1 of 67
    “ISS says the amount "significantly exceed" awards given by comparable companies.“

    Comparable companies?
    mwhitelkruppfred1MisterKityojimbo007viclauyycfastasleepbaconstangfotoformatequality72521
  • Reply 2 of 67
    XedXed Posts: 2,519member
    “ISS says the amount "significantly exceed" awards given by comparable companies.“

    Comparable companies?
    LOL I had the same thought when I read that.

    Hasn't Cook spent most of his career as a CEO getting paid less than other companies that make considerably less?
    viclauyycbaconstanglorca2770JFC_PAbadmonkfotoformat
  • Reply 3 of 67
    lkrupplkrupp Posts: 10,557member
    Haters gonna hate, apparently even investors who have been made fabulously wealthy during Cook’s tenure.
    edited February 2022 viclauyycbadmonkequality72521aderutter
  • Reply 4 of 67
    sflocalsflocal Posts: 6,092member

     ISS says the amount "significantly exceed" awards given by comparable companies.


    Please identify "comparable companies".

    Idiots.  They made a boatload of $$ on AAPL, and they're complaining that the guy that was at the wheel - also paid substantially less than other CEO's - is making too much?
    badmonk
  • Reply 5 of 67
    Why pay more if you don’t have to.
  • Reply 6 of 67
    XedXed Posts: 2,519member
    Why pay more if you don’t have to.
    Why don't they have to? You think that Cook couldn't be poached if another company is willing to substantially more for him? Do you believe that anyone could run Apple just as well or better for a less money? Where's your evidence in all of this? Does this also mean you're fine with companies—including Apple—paying low-end employees below a living wage simply because they don't have to?

    Additionally, would you prefer that a CEO gets paid a base salary without much emphasis on performance? As an investor I say that fuck that.

    https://www.bloomberg.com/graphics/2021-highest-paid-ceos/
    edited February 2022 viclauyycbaconstangbadmonkmuthuk_vanalingam
  • Reply 7 of 67
    JWSCJWSC Posts: 1,203member
    I’m not sure what “significant concern” is driving this.  Apple has done what many would have considered impossible under Tim Cook’s leadership.  One could be forgiven for wondering if Steve would have steered the Apple ship just as well or better had he lived.

    Nevertheless, Tim Cook has taken an extraordinary amount of compensation for someone who is not a company founder.  We have become accustomed to seeing CEOs receive huge sums over the years, especially in the US.  But the pay disparity between frontline employees and leadership is a bit unseemly being many hundreds of times their salaries.
    iOS_Guy80boboliciousviclauyycrobin huber
  • Reply 8 of 67
    BS.. bunch of Losers crying like Jealous   kids.. 

    He earned Every Penny!!!!!
    ravnorodomviclauyycbaconstangLoneStar88
  • Reply 9 of 67
    sflocalsflocal Posts: 6,092member
    BS.. bunch of Losers crying like Jealous   kids.. 

    He earned Every Penny!!!!!
    Did you not even read the "shareholder" word in the headline?  These are AAPL investors that most likely made out big on AAPL.  Jeez.
  • Reply 10 of 67
    ...per below Mr. Cook indicated he would be giving away most of his fortune...?
    www.foxbusiness.com/features/apple-ceo-tim-cook-joins-long-list-of-magnates-committing-to-donate-most-of-their-to-charity

    It seems the accolades here cite stock performance and growth as the main (only) measure of success...?
    www.pcmag.com/news/small-business-owners-overwhelmed-by-tech

    and yet: 
    www.economist.com/prospero/2011/10/06/beautiful-gadget-no-manual-necessary
    www.smithsonianmag.com/arts-culture/how-steve-jobs-love-of-simplicity-fueled-a-design-revolution-23868877/

    All things Apple seem to have become incredibly more complex, not the least is dealing with the now annual macOS releases since 2011.
    The loss of 32 bit app support (Windows does) has been a particular concern (cost/workflow/training) for this life time customer...

    Is the mac still 'a computer for the rest of us...?'
    edited February 2022
  • Reply 11 of 67
    XedXed Posts: 2,519member
    All things Apple seem to have become incredibly more complex, not the least is dealing with the now annual macOS releases since 2011.
    The loss of 32 bit app support (Windows does) has been a particular concern (cost/workflow/training) for this life time customer...

    Is the mac still 'a computer for the rest of us…?'
    You're upset that Apple got rid of 32-bit processors and eventually stopped supporting 32-bit architecture? Are you also upset that they did the same for 16-bit and moved to a Unix-like OS?
    viclauyycfastasleepapplguy
  • Reply 12 of 67
    ...per below Mr. Cook indicated he would be giving away most of his fortune...?
    www.foxbusiness.com/features/apple-ceo-tim-cook-joins-long-list-of-magnates-committing-to-donate-most-of-their-to-charity
    Usually that just means they have a foundation set up that both gives to charity and also takes the resulting tax write-offs. They're not actually "giving away" their fortune. They're choosing to donate to charities instead of paying taxes. I'm sure you've noticed that despite the tens of billions "given away" by the Gates Foundation that Bill Gates still remains one of the Top 5 richest people on Earth...but then also gets press coverage that makes it sound as if he doesn't want to keep the $$, which he obviously does.
    edited February 2022 fred1dewme
  • Reply 13 of 67

    Is the mac still 'a computer for the rest of us...?'
    You’ve made it abundantly clear for quite awhile now that it’s not for you anymore. There’s a reason for not clinging to legacy computing like 32bit. Go use the competition since Windows will be glacially slow in moving forward, or, you know, adapt.
    montrosemacs
  • Reply 14 of 67
    There is no denying Tim Cook should be suitably compensated, whether that amount is justified, only they know. One thing for sure, he certainly doesn't need that amount of money, unless he is striving to be as rich as a Russian oligarch. This is where I believe capitalism is failing - to some degree. Business must drive for efficiencies and profit, otherwise, they will just be as bloated as government agency but I truly believe, wealth needs to be more fairly distributed. A portion of business profits should be distributed to everyone in the Company, after all, they are contributing to the business. I absolutely believe CEO's should be suitably compensated and yes be incredibly wealthy but all businesses should distribute some portion of profits to all its people. 
    robin huberPrometheu
  • Reply 15 of 67
    Wealth disparity has become immoral. No one person deserves more money than they could possibly spend even if they spent full time trying to do it, with one exception: a person who, single-handedly saved the earth or it’s creatures from imminent total destruction. Don’t think Tim or other corp heads have done that. Yes, Cook has done an exemplary job and I personally have profited from it. But there is too much need in the world for a small group of people to hoard 90% of all wealth. 
    AppleZuluLumpyTapioca
  • Reply 16 of 67
    Has Cook created more than three or four times the value of the highest paid players in baseball? I think so.
    montrosemacstht
  • Reply 17 of 67
    paxmanpaxman Posts: 4,729member
    Minimum wage? Why not maximum wage? 
    I have been a huge Apple fan forever and I am also a TC fan, but no matter how great he and Apple are there's a lack of perspective. This is obviously not just about Apple and TC, but about ridiculous wealth and pay awards generally. 
    I have said this before - there should be an upper limit to any person's wealth. It should be limited to $999,999,999.99, at which point you get a dog park named after you and a diploma which says 'You won capitalism'. That's it. From then on every cent above that goes to universal health care and education. Boom!  Everybody wins including Fido.

    edited February 2022
  • Reply 18 of 67
    wood1208wood1208 Posts: 2,905member
    I as Apple investor also vote NO to Tim Cook's $99 million compensation package. That is less than he deserves. It should be more like $150 Millions. Still billions less than Elon Musk gets as CEO of Tesla who makes cars. Moreover, Tim said he will donate most or all of his money than who cares if he gets bit more in compensation which he deserves. We society(charity) will get it back unlike many others who keep passing in inheritance.
    edited February 2022 viclauyyc
  • Reply 19 of 67
    Xed said:
    All things Apple seem to have become incredibly more complex, not the least is dealing with the now annual macOS releases since 2011.
    The loss of 32 bit app support (Windows does) has been a particular concern (cost/workflow/training) for this life time customer...

    Is the mac still 'a computer for the rest of us…?'
    You're upset that Apple got rid of 32-bit processors and eventually stopped supporting 32-bit architecture? Are you also upset that they did the same for 16-bit and moved to a Unix-like OS?
    To be fair other than expanded memory access and possibly speed I don't understand further benefits of 64 bit, but when apps I license & use no longer work, it matters...

    I'd like to have the option to upgrade on merit or need. Kind of like onboard RAM and storage that means throwing out the baby with the bath water. Is that why $99M is available to a single human...?

    When I search under about this mac I get over 400 hits on 32 bit apps, and more major considerations include losing things like an Adobe Master Collection, which isn't even available for upgrade with a persistent license option, effectively forcing a choice of subscription or abandonment.  

    Even for Acrobat Pro (still available persistent) Adobe wants $450 USD (no upgrade beyond 2 years) while my current version keeps happily doing what is needed with no complaints. At what point are customers being held to ransom...? It certainly feels that way at times, although I assume it serves the developers well, including $99M compensation for a single human... Is that better...?

    I still have a G4 powerbook that runs (for now) including 'Classic' and an entire life's work on the mac... iWeb is another app that I really like, and think is some of the best 'no manual required' intuitive software to ever come from the Steve Jobs era...  32 bit, of course...
    edited February 2022
  • Reply 20 of 67
    Tim Cook has 99 million reasons to be happy, and a whiny shareholder isn't one of them.
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