Thursday, December 28, 2017

Rotten to the Core

Apple’s chief executive, Tim Cook, was paid $102m (£76m) this year after collecting a huge share bonus linked to the iPhone maker’s stock market performance. 
Cook was paid a basic salary of $3.06m, a cash bonus of $9.3m (up from $5.4m last year), and collected share awards worth $89m taking his total 2017 payout to $102m his basic $3m salary was increased to $3,057,692 “because 2017 was a 53-week fiscal year, the 2017 salary amounts reflect an extra week of pay”. That extra week’s pay is slightly more than the median US annual household income of $56,516
The bonus of 560,000 shares paid out in September. Cook received half the award because Apple’s stock delivered shareholder returns in the top third of the Standard & Poor’s 500 index during the past three years. He got the other 280,000 shares for simply staying in the job.
The stock package awarded to Cook when he became chief executive in 2011 was originally valued at $376m, but is now worth much more because Apple shares have increased six-fold since he signed the deal. As long as he remains the boss, Cook will receive 560,000 shares of stock annually until 2020. He will then get 1.26m shares in August 2021 as the final payment under his original contract.
Cook’s top five lieutenants were paid about $24.2m each. Luca Maestri, chief financial officer; Angela Ahrendts, head of retail; Johny Srouji, head of hardware technology; Dan Riccio, head of hardware engineering; and Bruce Sewell, the outgoing general counsel, collected $20m in share awards, cash bonuses of $3.1m and basic pay of just over $1m.

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