“Apple Inc. Chief Executive Officer Tim Cook received a 74 percent increase in his annual bonus for fiscal 2017 as the iPhone maker posted higher revenue and net income, after a rare decline a year earlier,” Anders Melin and Alex Webb report for Bloomberg. “Cook’s incentive pay totaled $9.33 million for the year ended Sept. 30, the Cupertino, California-based company said Wednesday in a regulatory filing. He also took home $3.06 million in salary and a previously disclosed equity award of $89.2 million, bringing his total payout for the year to about $102 million.”
“His top five lieutenants each got bonuses of $3.11 million, bringing their total compensation to about $24.2 million each, including salaries and stock awards,” Melin and Webb report. “The equity compensation is composed of shares that vest solely based on the executives’ continued employment and others tied to the performance of Apple’s stock compared with other S&P 500 companies.”
“For the first time, Cook ran up a $93,109 bill for traveling on private aircraft on non-business-related trips,” Melin and Webb report. “The Apple board stipulated this year that for security reasons the CEO should use private planes for business and personal travel, citing the risk given his high profile. Personal security costs were calculated at $224,216… Absent from Apple’s filing are details about what the company paid Chief Design Officer Jony Ive, considered by some to be its most important employee. ”
Read more in the full article here.
MacDailyNews Take: Regardless of the profits and stock performance, many will say: Too many mistakes too richly rewarded.
The recent lack of focus, timely performance, and vexing issues with quality control (that should not exist in the world’s most valuable company, 40+ years after inception) will, if continued, negatively impact the company and future executives years down the road, likely not the current set.
See all of the details in Apple’s proxy statement here.
SEE ALSO:
Apple’s Phil Schiller: We feel bad about the HomePod delay – December 8, 2017
Echo Dot was Amazon’s Black Friday – Cyber Monday bestseller as Apple’s delayed HomePod waits for 2018 release date – November 28, 2017
Apple’s late, delayed, limited HomePod is looking more and more like something I don’t want – November 27, 2017
Why Apple’s HomePod is three years behind Amazon’s Echo – November 21, 2017
Under ‘operations genius’ Tim Cook, product delays and other problems are no longer unusual for Apple – November 20, 2017
Apple delays HomePod release to early 2018 – November 17, 2017
Apple CEO Tim Cook: The ‘operations genius’ who never has enough products to sell at launch – October 23, 2017
Apple reveals HomePod smart home music speaker – June 5, 2017
Apple’s desperate Mac Pro damage control message hints at a confused, divided company – April 6, 2017
Apple is misplaying the hand Steve Jobs left them – November 30, 2016
Apple delays AirPod rollout – October 26, 2016
Apple delays release of watchOS 2 due to bug – September 16, 2015
Apple delays HomeKit launch until autumn – May 14, 2015
Apple delays production of 12.9-inch ‘iPad Pro’ in face of overwhelming iPhone 6/Plus demand – October 9, 2014
Tim Cook’s mea culpa: iMac launch should have been postponed – April 24, 2013
Milking the cash cow.
Again. Sculley 2.0.
The Devil is the details.
Just think, he could buy EVERY long time Mac Pro customer a brand new iMac Pro instead of that salary.
Something like if you have bought 3 Mac Pro models over a 10 year period, you get a free iMac Pro.
The same can be said for shareholders. For people usually worshipping money and consumed by greed, the exception you make for Cook, while expected, is illogical.
just curious you’re bashing on shareholders…
so what are you going to do in retirement?
if you have a pension plan ( like teachers pension) or a 401 (From work) you own shares. Govt. pension plans are invested in shares (bought by taxpayer monies)
or did you inherit a pile of money?
or do you plan to go on taxpayer supported welfare?
(if you retire at 70, live to 90 and want a 50k a year life- style you need 1 million saved Up — and if you have medical needs that can spiral way upwards)
much of aapl are own by small shareholders who have invested their employment savings into corp. shares so that we can take care of ourselves when we retire (i.e we don’t become a burden to the taxpayer). Many mutual funds present in 401s etc. own aapl.
What a bunch of dorks.
Tim Cook, Steve biggest mistake
And what will he pay in taxes?
“bringing his total payout for the year to about $102 million.”
Really? You’ve got to be kidding!
“Jony Ive, considered by some to be its most important employee. ”
Really? You’ve got to be kidding!
Time to bring back Scott Forstall, the guy who succeeded the right genealogy of true Apple value with all necessary qualifications, and most likely the ultimate pick by Steve Jobs. But alas, he was t quickly fired by Cook, for his fear of losing the position.
Oh well….
I will do a better job than Cook for only $5 million total compensation per year.
My proposals:
1 replace Cue, Ahrendts, Ive, etc in 3 years or less.
2 market Macs at same level as other products. keep Macs fresh at all times, never more than 24 months between upgrades or price adjustments. All Macs to have some reasonable user repair ability (sell refresh kits so users can replace batteries, RAM, SSDs,etc economically). RAM prices back to reality. MacOS to restore some skeu and improve user controls, native help and tutorials.
3 refreshed ipad mini
4 allow users to step back to prior major iOS on older devices
5 renewed push into computers for education and emerging markets — inexpensive plastic notebooks and great educational software, with major effort into promoting great 3rd party Mac software. Breath life into Mac App Store
6 iOS devices all have native software for graphic input device for Macs, improved v2.0 Pencil included with every new iPad
7 buy Roku, phase out existing ATV models, let Roku leaders have resources to make great content deals. Stop international video creation, instead forge great partnerships with studios. Apple provides computers, software, and financing; new content creators get premium distribution and marketing on Apple Roku platform
8 major manufacturing on every continent
9 remove native Google, Facebook, and Twitter from all OSes
10 kill the self driving car, redirect that R&D budget to advanced battery development. Forge tighter ties with lead auto manufacturers to improve CarPlay.
11 double the Maps budget, acquire more mapping experts
12 and so much more….
Right on!
Totally agree with everything.
And Apple must stop their self-righteous dictation on what their customers really want, often termed “wall garden” etc. We pay and Apple should give reasonable level of choice of what we can and cannot on what we paid for, like some other brands do. Apple in effect is saying that we are babies, and do not give them (us) freedom to do certain things, in the name of protecting performance or battery life etc. Apple, now the phone maker, must pay more attention to their other products, that are really their DNA, not the iPhone.
Feedback (my 2¢)
(1 replace Cue, Ahrendts, Ive, etc in 3 years or less.)
-Replace them today or expect the same shit 3 years from now.
(2 market Macs at same level as other products. keep Macs fresh at all times, never more than 24 months between upgrades or price adjustments. All Macs to have some reasonable user repair ability (sell refresh kits so users can replace batteries, RAM, SSDs,etc economically). RAM prices back to reality. MacOS to restore some skeu and improve user controls, native help and tutorials.)
-Ditto
(3 refreshed iPad mini)
-Ditto
(4 allow users to step back to prior major iOS on older devices)
-Not going to happen. Adds greatly to the burden of keeping the OS secure and audited.
(5 renewed push into computers for education and emerging markets — inexpensive plastic notebooks and great educational software, with major effort into promoting great 3rd party Mac software. Breath(e) life into Mac App Store)
-Time to mandate all new apps for iOS must have a Mac OS app in the store.
(6 iOS devices all have native software for graphic input device for Macs, improved v2.0 Pencil included with every new iPad)
-The finger is better than the $99 Pencil
(7 buy Roku, phase out existing ATV models, let Roku leaders have resources to make great content deals. Stop international video creation, instead forge great partnerships with studios. Apple provides computers, software, and financing; new content creators get premium distribution and marketing on Apple Roku platform)
-Anti-trust says no and the only thing Roku has going for it is it is less anal regarding apps. Leave content to Hollywood.
(8 major manufacturing on every continent)
-Localized is the future, but not the present. Apple makes nothing- all done by contract manufacturers and costs vary greatly by region and trade bloc.
(9 remove native Google, Facebook, and Twitter from all OSes)
-Prepare to get sued. Customers should be able to choose and as long as you can switch it off who cares? BTW Google pays Apple to be on iOS and Mac.
(10 kill the self driving car, redirect that R&D budget to advanced battery development. Forge tighter ties with lead auto manufacturers to improve CarPlay.)
-CarPlay is for the most part fine. Apple is not going to build a car- the window of opportunity has closed. Telematics would be a good area, but they are behind BlackBerry (QNX) and Microsoft among others.
(11 double the Maps budget, acquire more mapping experts
– Maps needs street view and needs more updated data.)
Currently they buy Tom Tom data which is not that special. Cook missed the boat on Waze which Google bought for less than a Billion.
(12 and so much more….)
All and Dav, y’all boys are on the right track to us Mac lovers. Maybe a tad off here and there, but I like your thinking.
@ Davgreg: please allow me to pile on. I mostly agree with the CEO candidate.
1. Ive and Ahrendts and some other dead wood can probably be replaced from internal personnel in less than 2 months. However, it will take years to perform the necessary organization and personnel changes required to make Apple perform like something more than the iPhone company with amateur hobby projects on the side. You don’t rush leadership selection processes if you want a great company to last. It sucks that Cook can’t walk and chew bubble gum at the same time. He surrounds himself with fashionistas while half of Apple’s product portfolio rots.
4. I disagree. Any device shoul be able to be restored by its owner to the software version that it was delivered with. Apple can warn users about any risks in doing so, but fundamentally Apple would have zero additional overhead in letting users control their OS.
5. Your proposal for Apple to mandate that any developer to support two or more platforms would be a disaster. Apple needs to provide incentives for new great Mac development. They don’t, and that is why Mac software sales are disappointing.
7. You are missing the forest for the trees. Roku has everything going for it that Apple doesn’t: better sales, more content deals in place, much more versatile hardware at all price points, significantly better software, and a remote that doesn’t suck. If as you claim these are nothing, then there would be no antitrust action ( especially from this useless atty general) and Apple could get a good bargain. The upside for Apple is it neatly cleaves Cue out ot the picture and makes the Roku video distribution division a standalone entity that doesn’t compete for resources inside the donut. The upside for Roku and users is Roku would have even more cash to do what they do better than Apple currently does.
8. If Apple isn’t creating the future, including distributed manufacturing, then it is not worthy of being labeled an innovator and will be passed by underdog companies that try harder. Apple makes the trashcan in the USA today. It can and should build a whole family of desktop modular Macs in the underutilized factory pronto.
9. These social apps don’t need and don’t deserve a special spot in the settings menu. They are just apps like any other.
Wall garden➔Walled garden
“Cook pulling in a total of $12.8 million”
That’s his salary and bonus. The rest are options, which need to be amortized over the years, and depend upon the company’s share price. If the stock had gone down this year, he would have gotten alot less, and if it goes down enough, he might have made nothing on them.
We all know that. But it drives him for more money, more profit. The incentive is working well. But the crux of the matter is that Apple should not be focussing on milking the market alone. They are all summarized very well in the post by “All CEOs are overrated”.
clearly he needs a big giant tax cut to remain competitive
Tim Cook gets off cheap.
Actually, Apple provides the jet for Cook to get off in. Cook pays nothing.
Tip your waitresses, folks!
Only a smiling visitant here to share the love (:, btw great style and design. “Everything should be made as simple as possible, but not one bit simpler.” by Albert Einstein.