Tim Cook as Apple Chief Set to High US Pay League
Appropriate steps from Apple Chief Tim Cook for Set to Top US Pay League
Apple’s late founder Steve Jobs created the world’s Most worthy company and was paid simply $5 in the last years of his life – however his successor Tim Cook, unknown outside Silicon Valley until his elevation to the top job final summer time, has been awarded a $378m (Â£244m) pay jackpot.
In the clearest signal but that the wage payments for America’s leading executives are ramping again to eye-watering pre-credit crunch levels, Prepare dinner’s 2011 rewards, disclosed yesterday, put him in pole place to grow to be the 12 months’s highest boardroom earner.
Cook took dwelling $900,017 in salary throughout 2011 and an extra $900,000 in money from an incentive scheme. However the bulk of his earnings will come from a windfall award of 1m Apple shares that tie him to the corporate for the subsequent decade. On 24 August final yr, to mark his promotion when Jobs retired, Cook was given stock then price $376m, half of which will be handed over in 2016 and half in 2021.
However by the point Prepare dinner takes supply of the shares they may be price considerably more. Each time Apple’s share worth positive aspects a greenback, its chief executive’s paper fortune will enhance by more than $1m. Earlier awards of shares imply a total of 1.376m shares are now owned by Cook or held in his name. Because Apple’s worth has risen steadily since final August Cook’s shares are already value $550m.
The shares have no performance criteria attached. To claim his winnings Cook, who joined Apple in 1998 from Compaq Computer Corporation, must simply stay with the company till 2021.
The details of Cook’s vast pay package come as the UK government has pledged to usher in new laws to tackle extreme executive pay. David Cameron said: “The marketplace for top people just isn’t working. It must be sorted out.”
Common pay for the chief government of a FTSE-100 company climbed 33% final yr and now stands at Â£5.1m – but it stays a fraction of boardroom rewards within the US.
“It is another planet,” said Sarah Wilson, chief executive of Manifest, which advises shareholders on company governance. “The awards are eye-watering within the US and you really do have this cult of the chief executive as superstar. There may be plenty of concern and uncertainty amongst board members that if they don’t pay these giant sums they will not get the individuals they want.”
Jobs was granted 5.5m shares during his lifetime, value $2.3bn to his heirs, but between 2007 and his death last year he obtained no additional awards. As an alternative, he collected a nominal annual wage of just $1 through the period that produced the first iPhone, the primary iPad, and during which Apple’s stock market value doubled.
Prepare dinner’s payout is still dwarfed by the $646.6m Jobs received in 2006, when his final swath of inventory options vested, taking his total compensation for the previous five years to $650.17m.
Apple overtook oil giant Exxon Mobil because the world’s greatest firm last summer, and is now valued at $394bn on the inventory market. But Cook earnings are effectively forward of those of Exxon’s chairman and chief government, Rex Tillerson.
In 2010, the newest 12 months for which figures have been disclosed, Tillerson earned $29m in money and shares, of which $5.6m comprised his salary and bonus for the year.