Apple CEO Tim Cook earned Rs. 652 crore in 2017
What's the story
This year, Apple paid a whopping $102mn (Rs. 651.8 crore) to CEO Tim Cook; his earnings increased by 79% thanks to iPhone X's performance. In a US Securities and Exchange Commission filing, Apple disclosed it paid a $3.06mn basic salary, $9.3mn cash bonus and also awarded $89mn-worth shares to Cook this year. Also, Cook got a private jet for all his travel in 2017!
Information
Cook's earnings linked to Apple's stock market performance
Tim Cook's massive earnings mostly come from the bonuses linked to the stock price of the iPhone maker. The stock price rose remarkably this year after the launch of the company's tenth-anniversary iPhone edition, the full-screen iPhone X.
Incentive Deal
Cook collected $89mn in September under incentive deal
Cook reaped $89mn as Apple paid the bonus of 560,000 shares under the 10-year deal he signed to keep Apple in a leading position. He received half the award as Apple's stock delivered shareholder returns that made to the top three on Standard & Poor's 500 Index in the last three years. He got the other 280,000 shares for staying on the job.
Shares
Cook will receive 560,000 shares annually until 2020
As part of the 10-year incentive deal, Cook will get 560,000 shares of Apple stock annually, till 2020. After that, he will receive 1,260,000 shares as the final payment in August 2021. When Cook became the CEO in 2011, the stock package was valued at $376mn. However, its value has now increased six-fold. Apple's share price is a little over $170 now.
Information
Apple shares peaked at $176
Apple's share value rose by over 200% since Tim Cook became the CEO in Aug'11 after Steve Jobs resigned. It peaked at $176.4 earlier in December but again plummeted to $170, reportedly after the demand for iPhone X became weaker than expected.
Security
Apple spent $224,000 on Cook's personal security
Apple disclosed that it requires Cook to take a private jet "for all business and personal travel." Apple stated, "This policy was implemented in 2017 in the interests of security and efficiency based on our global profile and the highly visible nature of Mr. Cook's role as CEO." It spent $93,000 on the private jet for Cook's holidays and $224,000 for his personal security.
Other Details
Cook received $104,000 in vacation "cash-out"
Apple's regulatory filing also showed that Tim Cook additionally collected an amount of $104,000 in vacation cash-out. Also, his $3mn basic salary rose to $3,057,692 this year, "because 2017 was a 53-week fiscal year, the 2017 salary amounts reflect an extra week of pay." His extra $57,000 week's pay is higher than the median US annual household income, which is $56,516.
Executives
Other top executive officers received $24.2mn in 2017
Meanwhile, other top Apple executives were paid $24.2mn (roughly Rs. 154 crore) this year. CFO Luca Maestri, Retail boss Angela Ahrendts, Hardware Technology Head Johny Srouji, Hardware Engineering Head Dan Riccio, and the outgoing General Counsel Bruce Sewell received $1mn basic pay, $3.1mn cash bonuses, and $20mn in share awards. Apple didn't disclose how much Chief Design Officer Jony Ive earned this year.