“Steve Jobs left big shoes. Apple Inc. is betting $378 million that Tim Cook is the right guy to fill them,” Scott Thurm reports for The Wall Street Journal.
“That is the value of the annual pay package Mr. Cook was awarded last August, when he was named Apple chief executive, about two months before Mr. Jobs died. Nearly all of the compensation stems from a grant of one million shares of restricted stock, valued at $376.2 million, based on Apple’s stock price at the time,” Thurm reports. “Mr. Cook’s 2011 compensation is the highest recorded in The Wall Street Journal’s annual CEO pay survey since at least 2006, when the Securities and Exchange Commission changed its rules for reporting executive pay.”
Thurm reports, “The shares carry unusual restrictions. Mr. Cook can’t sell half the shares before 2016, and the other half before 2021. Still, the rapid run-up in Apple’s stock means the shares are now valued at $530 million. In its proxy statement, Apple said it viewed the shares as compensation for the next 10 years, and not solely for 2011.”
Read more in the full article here.
MacDailyNews Take: Cooks’ stock package is incentive to stay with Apple Inc. for the long haul, at least 10 years, not a annual salary.
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I agree that to call this a salary is a misnomer, but I guess it must be treated as such by the SEC rules?
Jobs was the right guy and his example of a 1 dollar a year pay cheque was a superb example of a CEO leadership Not just for Apple but all of cooperate America.
No one on this planet is worth the money Cook is taking home. No one. It’s just very wrong. He is not so gifted that no one else can do what he does.
Get educated before you speak. Tim’s compensation package is for the next 10 years. That’s not what he makes annually. Also, do you really think Steve only earned $1 per year? No! That was his annual salary. He was already given a bunch of stock and a private jet after his return to Apple. Obviously, over time the value of that stock increases and that’s what his true compensation was. Tim is no different.
After 1997, Jobs did not sell any of Apple’s stock, so basically he lived only on Pixar’s and Disney’s shares, because both Pixar and Disney, unlike Apple, paid dividends. However, Jobs’ lifestyle was rather humble, so I would suppose that they did not spend even a little portion of those money. There were no significant expenses beyond updating Mercedes coupe (and designing yacht, which was not even finished).
There was a report he did sell off the first half.
Whatever the case is… its a lot of money and really – does anyone truly deserve that amount. If you believe that – you’re noting more than a lemming.
You’re an idiot.
Thought I read when he was ousted from Apple he sold all but one share so he could still get an annual report. I know I read that somewhere. But then when he came back he probably purchased more shares. (I certainly did!)
As you can see from the MDN archives, 2003 until 2010, Jobs 1 dollar salary actually helped Apple as a whole. It’s a perfect example as to what many CEOs in our tight times should be doing also.
True, because if they were paid only $1, THEY don’t make money unless the company makes money. A little incentive to try harder to improve what you’re managing.
Tim Cook won’t get it done, regardless of what he is paid.
errr… seems to be “getting it done” so far. Care to elaborate?
Never mind. Don’t bother.
note the word “won’t” not “isn’t”…my response is regarding the future growth and innovation of , not Cook is resting on the laurels of the genius that was Steve Jobs.
Obscene!