The World’s Best-Value CEOs: Apple’s Tim Cook #11

Laurie Meisler and Jenn Zhao write for Bloomberg:

Are chief executive officers worth their pay? Apple CEO Tim Cook’s $10 million in compensation isn’t chump change, but it’s a bargain when you compare that to the company’s massive average economic profit over the last three years. Other companies pay their CEOs much more, but seem to get a lot less for it.

Bloomberg looked at the pay-for-performance ratio of 100 CEOs at some of the largest companies around the world to see which companies are getting the best value from their CEO.

Apple CEO Tim Cook is ranked eleventh with a score of 95.40; latest pay: $10,281,327; company’s three-year average economic profit: $22,609M million; note: “Expected to own a stake in Apple worth 10 times his base salary.”

Read more in the full article here.

MacDailyNews Take: Tim Cook offers excellent TCO.

6 Comments

  1. http://chiefexecutive.net/higher-ceo-pay-produce-better-company-performance/

    All CEOs are vastly overpaid compared to many of the greatest leaders from decades past. Former high performance CEOs like Herb Kelleher (founder of Southwest Airlines) are on record saying that modern executive compensation is getting out of hand. It’s not the one leader, it’s the application of leadership strategy to empower every member of the company that produces great teams. Great products, services, and profits follow.

    Apple used to “Think different”. There is no evidence left that any of this culture remains. Apple looks and acts like any other dysfunctional bloated corporation. SWA has done a good job of acting small and giving employees the tools and incentives to be efficient and entrepreneurial. As soon as Southwest turned a profit, Kelleher instituted a profit sharing plan that gave all employees a reward for great performance. His whole career he took a fraction of the compensation that other airline CEOs took — airlines that are no longer in business today. His kind of leadership produces great organizations. Great Kelleher quote: “It is my practice to try to understand how valuable something is by trying to imagine myself without it.”

    I suspect that nobody would miss Tim Cook if he was replaced by anyone with greater attention to user experience for half the salary.

    I know, the usual suspects will demand that CEOs be nominated by names.

    First, I think it should be a Mac person with deep association with Apple’s past. Also, the leader has to demonstrate not just steady financial performance but a commitment to change the world for the better as Jobs did — without being political. That person may be already there within Apple — but not in the current executive team.

    But let’s say you want to plug in a great leader from another company. Okay, how about Marc Benioff. How about Jeff Weiner. Lars Sorenson. JeniHsun Huang. John Chambers. Stephen Luzco. Chuck Robbins. Discuss amongst yourselves.

    We all recall too that Steve Jobs, already with more money than he knew what to do with, returned to Apple and took a $1 salary, although clearly he accepted some funky business with stock options that the board threw at him. Money was instead spent on the team and on product development.

    The culture of modestly and shared destiny seems gone at Apple. Every executive have been lavished with insane compensation, they act as if they live in ivory towers and never interact with anyone who isn’t a multimillionaire. Ahrendts was gifted $75 million to just walk in the door, zero performance results expected or observed.

    Cook and Company have been overly rewarded for being in the right place at the right time to reap the money that Jobs’ machine prints. Since then they have been coasting. Investors should expect better. #11 ranking can be attributed to Jobs’ app store, nothing else. Cook has proven himself incapable of rallying the Apple teams to create superior products on time and at the right price. Cook’s financial games have done nothing to improve Apple’s stock price. And Apple’s massive growth in personnel has achieved bloat and complacency as opposed to exciting, industry-breakthrough products. Apple can’t even keep firing on all cylinders, keeping its current product lines fresh, let alone deliver unexpected delightful new things as we enjoyed in the 2000’s.

  2. “We have exciting things in the pipeline.” – T.Cook 2012
    “We have exciting things in the pipeline.” – T. Cook 2013
    “We have exciting things in the pipeline.” – T. Cook 2014
    “We have exciting things in the pipeline.” – T. Cook 2015
    “We have exciting things in the pipeline.” – T. Cook 2016
    “Lawdy, Lawdy, Lawdy. Thank you evah so much Bloomberg fo’ such a generous rankin’! I am humbled! Really, all I try to do is stay out of the way and let those good people below me work their magic. And boy howdy they’ve been busier than a hive of bees durin’ pollenatin’ season. At least, that’s what they tell me. I mean, I hear we’re comin’ out with some new-fangled earphones that don’t even have any wires. Can you imagine such a thing! Yessirree Bob, that’s what I call a pipeline hummin’ away! Anyways, thanks again. I’m headin’ on up to New York City to meet with the president-elect. Now that there’s a man who knows how to succeed in business!” – T. “Opie” Cook 2016

  3. Are you kidding me?
    WHAT exactly did this guy do this year to earn that?
    Ask us loyal Mac users and we’ll give you a list of failures and empty promises and poor leadership. Just look at the “New” Apple products that are “Shipping in 4-6 weeks” (ya know, AFTER the holiday season). THAT says it all to me. Especially when those “New” products have had analytic data to support the estimated purchase order that SHOULD have been made to meet demand… and let’s not go to the graveyard of lost revenue this jackass leaves on the table (no new mac pros, iMacs, mac mini, etc.. ) Who ever voted for this is clueless and is just randomly picking people to fill space with words.

    PLEASE sign this simple petition to get this clown out of this important job. I am willing to bet ANYONE other than him would do a better job. TIM COOK HAS TO GO!!!!
    https://www.change.org/p/apple-board-of-directors-remove-tim-cook-as-ceo-of-apple

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