Apple CEO takes big pay hit in 2012
ReutersNEW YORK -- Apple Inc. CEO Tim Cook's 2012 compensation package of US$4.17 million is a huge cut on paper for the top executive of the most valuable U.S. corporation, after a 2011 package fattened by more than US$376 million in long-term stock awards.
December 29, 2012, 12:05 am TWN
Cook received the largest single pay package awarded to a company CEO in about a decade when he replaced Apple co-founder Steve Jobs in August last year, shortly before the Silicon Valley legend's death in October 2011.
The maker of the iPhone and iPad made the 2012 compensation disclosures in a regulatory filing on Thursday. Cook, 52, has been with Apple since 1998.
Virtually all of Cook's US$376 million stock bonus in 2011 was in awards that vest in two chunks — one in 2016 and the other in 2021. This structure was intended to keep Jobs' longtime lieutenant at the helm for many years, as the value of the stock will depend on how well the company is doing in 2016 and 2021.
Cook, who is credited with masterminding a sprawling but efficient Asian supply chain, has generally received high marks for his first year for shepherding several successful gadget launches, including the iPhone 5.
But he was forced to make a public apology in September after the company launched a mapping service application riddled with glaring geographical errors. The Maps app fiasco contributed to the departure of fellow Apple veteran and software chief Scott Forstall.
In terms of base salary, Cook actually received a 50 percent increase to US$1.4 million for 2012, and the same 200 percent non-equity bonus other top Apple executives like CFO Peter Oppenheimer earned, Apple said in the Thursday filing ahead of a Feb. 27 shareholders' meeting.
Cook's 2012 package includes a nonequity bonus of US$2.8 million.