Despite its revenue miss and revised guidance, Apple has topped financial targets for fiscal 2018 so the company’s board has decided to give CEO Tim cook a 22% increase in pay.
According to Apple’s SEC filing for fiscal 2018, Tim Cook’s compensation in fiscal 2018 has surged to $15.7 million, up from the $12.83 million he earned in 2017.
BusinessInsider has more:
That includes a base salary of $3 million, $12 million in bonus incentives for hitting performance goals related to sales and operating income, and $294,082 to pay for Cook’s private jet fare.
The figure excludes $121 million in Apple stock that vested last year. If you add the $121 million in 2018 stock awards to the $3 million base salary, the $12 million in non-equity incentives awarded based on performance and the $682,00 in “other compensation,” Cook’s total compensation for fiscal 2018 reaches a cool $136.68 million.
“We believe the compensation paid to our named executive officers for 2018 appropriately reflects and rewards their contribution to our performance,” Apple states in the filing.
The Cupertino technology giant also spent $294,082 on private aircraft flights for the CEO and $310,981 on Cook’s personal security. Back in 2017, the iPhone maker began requiring that Cook use private aircraft for both business and personal travel. Apple’s board said at the time that doing so would be “in the interests of security and efficiency based on our global profile and the highly visible nature of Mr. Cook’s role as CEO.”
Other executives were awarded big bonuses as well: finance boss Luca Maestri, general counsel Kate Adams, retail head Angela Ahrendts and op-chief Jeff Williams all made over $26 million each, stock awards included. These executives have a base salary of $1 million.
Directors Andrea Jung, Al Gore and Bob Iger are on Apple’s compensation committee.
Some of Cook’s massive stock incentives as part of a 2011 grant vested earlier this year (he cashed in $121 million). Plus, he still has over 1.5 million Apple shares that haven’t vested, worth approximately $189 million at the current share price.
Here are other highlights:
- Cook was paid $15,682,219 in fiscal 2018
- The median Apple employee makes $55,426
- Half of Apple’s total employees make less than the media pay and half make more
- Apple currently has 132,000 employees
It must be underscored that many Apple employees work in retail and with AppleCare, and they’re factored into the median employee compensation calculation. “Cook’s $15.7 million compensation, not counting his restricted stock, is 283 times what the median Apple employee makes,” reads the Business Insider report.
Apple’s fiscal 2018 ended September 29, 2018. The holiday quarter for which Apple issued a revenue warning files as Apple’s fiscal 2019 first quarter. As such, Apple’s guidance correction for the holiday quarter has no bearing on executive compensations for fiscal 2018.
Cook is planning to give his riches to charity, similar to Bill Gates and Warren Buffet. An SEC filing revealed that Cook last year donated $5 million in Apple stock to an unspecified charity.
Since becoming Apple’s CEO in 2011, Cook’s made $650 million in stock.