Tim Cook’s total remuneration jumped 22% in 2018
Apple chief executive Tim Cook saw his total remuneration jump by 22 per cent its last fiscal year ended in September, as iPhone sales hit a peak from which they have since begun a sharp decline.
With the company’s shares still flying high last summer, Mr Cook was also rewarded with stock gains worth $60m, as a tranche of a long-term stock plan granted in 2011 came due.
Apple said its total shareholder return over the three years to last August had put it among the top 12 per cent of companies in the S&P 500, justifying the stock payout. The shares have tumbled 35 per cent since hitting a peak three months ago, however, over worries that the iPhone boom over which Mr Cook presided is coming to an end.
Most of the Apple CEO’s remuneration for last year came in the form of a cash bonus. Apple said it had paid him the maximum $12m that was available, as its revenue and operating income growth had exceeded targets for its annual cash incentive scheme.
His total pay for the year came to $15.7m, including $310,981 worth of security expenses and $294,082 in costs related to private aircraft. In 2017, Apple’s board decided that Mr Cook must take private planes for both business and personal travel for security purposes.
Mr Cook, who is 58, took over as Apple’s chief executive in 2011. At the time, he was handed a ten-year stock incentive plan judged to be worth $376m. Mr Cook asked for the plan to adjusted two years later to have the payout tied to Apple’s stockholder returns.
Last summer, as Apple’s value rose above $1tr for the first time, Mr Cook was paid out a tranche of 280,000 shares under the plan. He still has 2.38m worth of unvested stock awards, currently worth $357m, even after the recent share price slide.