Tim Cook Salary: Apple CEO Tim Cook Takes Huge Pay Cut in 2012

Page 1 of 2

Tim Cook Salary: On December 27, 2012, Apple Inc. (NASDAQ:AAPL) filed a preliminary proxy statement with the SEC. A copy of the 50+ page statement can be found here.

Tim CookWhile there is a lot of information to sift through, one of the most important findings is the compensation of CEO Tim Cook. Despite the fact that Apple Inc. (NASDAQ:AAPL) is one of the most valuable companies in the world, Cook took a huge pay cut in 2012.

When compared to compensation of $378 million in 2011, the $4.17 million earned by Cook in 2012 would seem to be an error. However, this is exactly how much the high-powered CEO earned over the past 12 months.

With all this in mind, there is one question that needs answered: why did Cook earn so much less in 2012? In short, this comes down to one thing and one thing only: stock option awards.

According to a breakdown on TechCrunch, “Cook was granted a number of in both 2010 ($52 million worth) and 2011 ($376 million), but which he received none of in 2012. Those stock awards include a large number, which will vest in 2014, 2016, and 2021 respectively, and which now total over $750 million at today’s current market value, according to the filing.”

On page 23 of the SEC filing, Apple Inc. (NASDAQ:AAPL) shares information on how the company determines compensation for the Chief Executive Officer. Here is the process, as far as the current employment of Cook is concerned:

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!