Apple’s chief executive, Tim Cook, collected a large share bonus that was related to the iPhone maker’s stock market performance and later he was paid $102m (£76m) this year.
The total payment for 2017 for Cook was $102 million which comprised of collection of share awards that was worth a total of $89 million and a cash bonus of $9.3 million aside a basic salary of $3.06 million. Last year, he was paid a cash bonus of $5.4 million. These figures were disclosed by Apple in a regulatory filing.
Cook was paid a bonus of 560,000 shares by the company in September. During the last three years, the shareholder returns generated by the company was ranked in the top third of the Standard & Poor’s 500 index and this is the reason, officially, that half of the rewards were given to Cook. The other 280,000 shares were given to him because he simply chose to remain with the company and his current job.
Since 2011, when Cook was first made the chief executive of Apple, there has been a six folds increase in the value of the stocks of the company and therefore the package of stocks given to Cook is valued much more than the original $376 million – which was the value in 2011.
Until the year of 2020, 560,000 shares of stock would be awarded to Cook annually if he simply chooses to remain as the boss at Apple. According to the terms of his contract, under the final payment clause, a total of 1.26 million shares of the company would be given to him in August of 2021.
It is required that Cook always travels by private aircraft “for all business and personal travel” for security reasons, according to the filing by Apple. $93,000 was the cost to the company for the use of a private jet by Cook for his holidays, the filings revealed. And $224,000 was the total cost for the personal security detail of the Apple CEO.
Cook’s basic $3m salary was increased to $3,057,692 “because 2017 was a 53-week fiscal year, the 2017 salary amounts reflect an extra week of pay” and he was awarded an additional $104,000 in lieu of “vacation cash out”. According to the US Census, the median US annual household income at $56,516 was slightly lower than that extra week’s pay for Cook.
About $24.2 million each was paid to the top five assistants of Cook. The break up included a basic pay of just over $1million, cash bonuses of $3.1 million and $20 million in share awards. The receivers of this amount were Luca Maestri, chief financial officer; Angela Ahrendts, head of retail; Johny Srouji, head of hardware technology; Dan Riccio, head of hardware engineering; and Bruce Sewell, the outgoing general counsel.
The filing did not include the remuneration awarded to Jony Ive, the company’s British chief design officer.
(Adapted from Theguardian.com)