Apple’s (AAPL) 2012 proxy statement filed on Monday with the U.S. Securities and Exchange Commission reveals that Tim Cook, who took over the helm at the tech giant when Steve Jobs resigned at the end of August, was rewarded handsomely for taking over as CEO, with a compensation package totaling an impressive $376 million.
According to the filing posted online by Apple, Cook’s 2011 compensation included $900K in salary — a figure that far outstrips Jobs’ $1 a year — $900K in incentive pay and 1 million restricted shares of Apple valued at $376,180,000, the closing price of the co.’s stock on August 24, 2011, which corresponds with the date the award was granted.
[Must be nice… OTOH…]
On paper, the shares were worth more than $376 million when the grant was made. But in 2011, they were worthless. Half of them will vest in 2016, five years after they were granted. The other half will vest in 2021 — “subject to Mr. Cook’s continued employment with the Company.”
For the record, Cook — who was Apple’s chief operating officer before he succeeded Steve Jobs as CEO last August — is a hands-on manager who makes Apple’s supply chains run on time. In fiscal 2011, his company generated $108 billion in revenue. In calendar 2011, its market value grew by more than $70 billion. As of September, it had $81.57 billion in cash and marketable securities in the bank and zero debt.
If Tim Cook had been paid $378 million in 2011, you could argue that he was worth it.
[Meaning, they might be worth a bundle in a few years, or a lot in many years, or maybe not. But it does give him incentive to hang around which is the point.]