Apple chief executive Tim Cook earned more than $14.7 million in salary last year, an annual increase of almost 28 per cent, according to a statement that the Cupertino-based company has filed with the US Securities and Exchange Commission.
He earned a fixed base salary of $3m but was awarded $10.7m in incentives for his performance and more than $1 million in other compensation.
Mr Cook, who has led one of the world’s most valuable technology firms since 2011, took home $3.2m more than the amount he earned in 2019. However, his 2020 remuneration was almost $1m less than his 2018 earnings, when he was awarded $15.7m.
Mr Cook’s 2020 compensation also includes $17,100 under a 401(k) pension plan, vacation cash-out of $115,385, security expenses of $470,246 and personal air travel expenses of $432,564, including the chief executive’s use of private aircraft.
For security reasons, Apple’s board implemented a policy in 2017 that requires Mr Cook to use private aircraft for all business and personal travel.
His 2020 package does not include stock benefits. This year, however, Mr Cook’s remuneration will also include a long-term share bonus.
“For the first time since he was promoted to the CEO role in 2011, Mr Cook’s 2021 compensation will include a long-term equity award,” Apple said in the filing.
“This award will better align the structure of his time-based and performance-based equity incentives with the awards of our other named executive officers,” it added.
In September, he was awarded 667,974 restricted stock units worth more than $76m at Apple's share price that time.
“Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity. For the first time in nearly a decade, we are awarding Tim a new stock grant that will vest over time in recognition of his outstanding leadership and with great optimism for Apple’s future as he carries these efforts forward,” Apple’s board of directors said in September.
Last year, the iPhone maker reported net sales of $274.5 billion and an operating income of $66.3bn, representing 6 per cent and 4 per cent annual growth, respectively.
These results exceeded the target goal for each performance measure and resulted in a pay-out equivalent to 179 per cent of the total target pay-out for Mr Cook and other executives, Apple said in a SEC filing.
“Beginning in 2021, an environmental, social and governance modifier based on Apple values and other key community initiatives will be incorporated into our annual cash incentive programme.”
“This change will further motivate Apple’s executive team to meet exceptionally high standards of values-driven leadership in addition to delivering strong financial results,” it added.
