After precipitous stock slide, Apple Board puts 40 percent of Tim Cook’s pay package at risk

“Are you an investor who feel bummed out about Apple’s 41 percent stock slide in the last year? Tim Cook feels your pain,” Peter Kafka reports for AllThingsD. “And if Apple doesn’t perform in the future, he might lose some money, too. Apple’s board has changed its pay package for its CEO, in a way that puts a big chunk of his future payouts at risk.”

“If Apple’s stock outperforms the market over the next 8 years, Cook will be able to keep all of the 1 million Apple shares the company promised him back in 2011, which he was previously set to get no matter how Apple’s stock fared,” Kafka reports. “But if Apple’s stock does a lot worse than the market, Cook could lose up to 40 percent of those shares.”

Kafka reports, “In a document filed with the SEC today, Apple… also says that Cook is ‘leading this initiative by example,’ and has pushed the company’s board to add more risk to his pay package.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Ellis D.” for the heads up.]

46 Comments

    1. in case you hadn’t noticed, the compensation committee set up Cook on the Queen Mary; the individual investor has a rowboat. Cook hit the jackpot when he stepped aboard. All that his future stock awards ensure it that his stateroom will be lined in real leather instead of latex. If the stock further stagnates, perhaps he will settle for Nappa instead of Corinthian. Oh, the horror.

      1. re “Oh, the horror.”

        Still vastly more than most CEO’s will do — like Barmy continuing to pull bonuses while Microsnore flounders, or the financial sector bigwigs getting BONUSES out of the bailout money (!!!) after tanking the economy.

  1. Are we seeing a peek at the beginning of the end for the useless Tim Cook? Probably not so all you lemmings relax. But, for the adults here, maybe a ray of hope.

    1. @JM
      Thanks SO much for your insightful contribution. Your thinking is like a laser, cutting to the heart of the matter, illuminating the issues like a veritable ray of wisdom. Soooo adult of you, too — to express it in this way.

      1. Keep that boilerplate handy. Jay and other like-minded sentinels of swoon are determined to see Cook removed, willy-nilly.

        In trying to visualise the results of such an ouster, I can’t decide between (a) the stock price rising dramatically as the market celebrates the Scullification of a troublingly unconventional company; or (b) the stock price falling dramatically because the market craps over any change at Apple. It fell 1.5% in January after word got out that a custodian at Apple HQ had emptied the wrong wastebasket.

    2. The SLOW fade of Apple dominance has begun some time ago since last year.

      Not impressing Wall Street, the media or Apple fans with minor incremental upgrades and no major releases of new products. iTV or iWatch? Vapor ware …

      That said, the only bright sign is the new MacPro looks pretty sweet, but sales are limited. The iOS7 redesign is yet another different disappointing story.

      Tim Cook is an appeasing politically correct professional and not worth more than a dollar in salary.

      Miss you, Steve.

  2. Tim Cook runs a company with many sides and aspects to it. One is to be profitable and offer a dividend to shareholders.

    It is wise to cater to that aspect since much PR about the stock affects the company’s business and popularity. To make sure that the recent times negative press about the Apple stock can be reduced is very wise.

    Tim is a genius when it comes to handle thousands of aspects and to weigh these in every decision. Therefor this decision is likely well founded.

  3. Take the company private so they can continue working on great products instead of appeasing stupid investors and a stock target price that is so easily manipulated based on nothing to do with the business itself.

  4. The real reason AAPL is down

    After a lot of thought, I think there are at least two good reasons why AAPL is down.

    1) The hedge fund managers want volatility – they need to manipulate stocks in order to profit. They play their little hedge-fund manager games amongst each other, seeing who can trigger a herd reaction and be on the winning side of that landslide. Now AAPL is down, later it will be up. It’s too big a part of the NASDAQ – heck, the entire market – to be ignored like this forever.

    2) The professional money manager crowd hates the fact that tens of millions of individuals have purchased AAPL stock on their own, without paying money management fees to the money manager crowd. If these tens of millions of individual, thinking investors can make money without the money manager crowd then who needs the money managers?? The money manager crowd wants the individual, free-range investor to fail. There’s incentive across the entire financial management industry to lower the price of AAPL as far and for as long as possible to shake out the individual investors.

    The stock market and financial industry is severely rigged against individual “retail” investors. Profits are made by using insider information and by seeding false information to the public, thereby temporarily creating runs or sells on certain stocks.

    While I don’t think there is a formal conspiracy to manipulate the stock, there are systemic reasons why AAPL is down. None of those reasons have anything to do with Apple or its performance in the actual market (not stock market) in which it competes. All of those systemic reasons have to do with the parasites that are the financial industry.

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