Apple’s Cook Brought Home a Little More Bacon in 2013
Apple (NASDAQ:AAPL) CEO Tim Cook only saw a slight pay increase in fiscal 2013, according to a regulatory filing the company submitted to the Securities and Exchange Commission on Friday. According to Apple’s preliminary proxy statement, Cook earned about $1.4 million in salary and a bonus of $2.8 million for a total compensation package of almost $4.3 million in fiscal 2013. Apple also contributed $52,721 to Cook’s 401k account, life insurance policy, and other benefits.
Cook was named CEO of Apple in August of 2011, immediately after Steve Jobs submitted his resignation. Although Cook only earned $900,000 in salary during 2011, he was given shares of company stock that made his total compensation package worth $378 million, noted the San Jose Mercury News. This makes his current compensation package seem quite small in comparison, although it is still slightly more than last year’s total compensation amount of $4.2 million.
As noted by MacNN, Cook’s stock holdings would be worth over $500 million at current value. However, Cook’s stock is in the form of restricted stock units, or RSUs, and other options that won’t vest until 2016 and 2021. This means that the value of the shares could increase or decrease depending on how the company stock was performing at the time it vests.
Earlier this year, Apple altered Cook’s compensation package so that the CEO has an even greater stake in the success of the company. According to a filing made with the SEC in June, Cook personally requested that the new changes apply retroactively to his “2011 CEO equity award as well as any potential future awards.” Now 50 percent of Cook’s RSUs are directly tied to specific performance targets and are “at risk in each future annual performance-based tranche.” Apple’s Compensation Committee noted that “Cook faces only downside risk from the modification.”
Apple’s fiscal 2013 year, which ended in September, saw the company lose almost 25 percent in market value after the stock price peaked above $700 in September of 2012. However, Apple still remains the most valuable company in the world, according to market capitalization.
Despite this year’s declines, Apple’s stock price may soon rebound. Several analysts believe that Apple saw record sales during the December quarter and will soon reap the added benefit of a recently announced distribution deal with China Mobile (NYSE:CHL), the world’s largest carrier with over 763 million subscribers. Here’s how Apple traded on Friday.
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