Apple gives Tim Cook 51 percent salary rise, but his total compensation drops 99 percent

Cook's 2011 compensation consisted mainly of stock grants, but this year he got none

Apple CEO Tim Cook received compensation totalling US$4.17 million in 2012, down 98.9 percent on last year -- although his 2011 compensation of $378 million consisted mostly of a one-off stock grant, worth $376.2 million at the time.

Cook's salary, on the other hand, rose 50.8 percent, to $1.36 million, and his additional incentive payments more than tripled, to $2.8 million, the company revealed in a filing to the U.S. Securities and Exchange Commission (SEC) on Thursday.

His predecessor, Steve Jobs, famously took an annual salary of just $1. He received no additional incentive payments, although Apple picked up the tab for his private jet, paying $1.1 million from 2008 through 2010.

Apple's compensation committee considered that Jobs was amply compensated by the growth in value of Apple's stock, of which he held around 5.5 million shares. Its grant of 1 million restricted stock units (RSUs) to Cook on Aug. 24, 2011 was an attempt to motivate him in a similar way. Half the shares will vest in 2016, five years after he became CEO, and the other half in 2021, assuming he is still with the company.

Jobs' holding of Apple stock was dwarfed by his stake in Walt Disney Co., of which he owned around 7 percent as a result of his sale of animation studio Pixar to the company. That reportedly netted a 2011 dividend payment of $82.8 million for the trust fund to which he bequeathed his shares.

Overall, compensation by stock price has been good for Cook. His one-million-share holding is now worth around $515 million, up 36 percent over the last 16 months, based on Friday's stock price.

That, though, is nowhere near the $705 high Apple shares hit on Sept. 21, the day the iPhone 5 went on sale. Since then, Cook has made a paper loss of $190 million.

The stock price decline was triggered, in part, by disappointment that the new iPhone did not exceed the numerous rumors about its capabilities, and also with dissatisfaction with the new mapping application that Apple included in iOS 6. Its poor performance prompted Cook to issue a rare public apology, and led to the departure of Apple software chief Scott Forstall, once seen as a contender for the role of CEO.

To get Apple's stock back on an upward track, Cook will have to deliver more inspiring products than the iPad Mini -- perhaps including an Apple TV. There are signs that Apple may be moving to extend its TV offering beyond the diminutive AppleTV set-top box and the sale of TV show episodes through iTunes. Earlier this month, Cook described TV as "an area of intense interest," a stark contrast to his predecessor's dismissal of it as a "hobby."

Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news for IDG News Service. Send comments and news tips to Peter at peter_sayer@idg.com.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesApplepersonnelPixar Animation StudiosWalt Disney Company

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Peter Sayer

Peter Sayer

IDG News Service
Show Comments

Cool Tech

Bang and Olufsen Beosound Stage - Dolby Atmos Soundbar

Learn more >

Toys for Boys

ASUS ROG, ACRONYM partner for Special Edition Zephyrus G14

Learn more >

Nakamichi Delta 100 3-Way Hi Fi Speaker System

Learn more >

Sony WF-1000XM3 Wireless Noise Cancelling Headphones

Learn more >

Family Friendly

Mario Kart Live: Home Circuit for Nintendo Switch

Learn more >

Philips Sonicare Diamond Clean 9000 Toothbrush

Learn more >

Stocking Stuffer

Teac 7 inch Swivel Screen Portable DVD Player

Learn more >

SunnyBunny Snowflakes 20 LED Solar Powered Fairy String

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Shining a light on creativity

MSI has long pushed the boundaries of invention with its ever-evolving range of laptops but it has now pulled off a world first with the new MSI Creative 17.

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?