The Freeland File
Aerospace & Defense
Global Market Data
Lucy P. Marcus
The Great Debate
Macro & Markets
Lipper Awards 2012
Personal Finance Video
UPDATE 1-US administration urges Republicans not to block 'fiscal cliff' deal
26 Dec 2012
UPDATE 2-Police investigate NBC News anchor for showing gun clip
26 Dec 2012
Ex-U.S. President George H.W. Bush in intensive care
Americans blame Republicans more than Democrats for "fiscal cliff": Reuters/Ipsos poll
Stocks down on Sen. Reid's "cliff" remarks; yen falls
More funerals in Newtown, White House gun task force meets
Lawmakers play waiting game with ‘fiscal cliff’ deadline in sight
UPDATE 1-US administration urges Republicans not to block ‘fiscal cliff’ deal
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Explosion in Nigeria
Packed fireworks explode inside a building in densely populated Lagos, Nigeria. Slideshow
Swimmers brave the cold temperatures to take a dip. Slideshow
Apple CEO's pay takes big hit vs. record 2011 package
Apple's iPhone 5 starts strong in China but shares pressured
Mon, Dec 17 2012
Apple's shares swallow biggest loss in four years
Wed, Dec 5 2012
Analysis & Opinion
Wall Street channels Charles Dickens in 2012
Counterparites: 2012 — The year of bank fraud
Investing Simplified »
Techquity: Apple CEO's huge pay cut, rating boost for Amazon
Apple CEO Tim Cook speaks to the audience during an Apple event in San Jose, California October 23, 2012.
Credit: Reuters/Robert Galbraith
NEW YORK |
Thu Dec 27, 2012 2:41pm EST
NEW YORK (Reuters) - Apple Inc CEO Tim Cook's 2012 compensation package of just over $4 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 $376 million in long-term stock awards.
Cook received the largest single pay package awarded to a company CEO in about a decade when he replaced Apple's legendary co-founder, Steve Jobs, shortly before Jobs' death in October 2011.
The maker of the iPhone and iPad made the 2012 compensation disclosures in a regulatory filing on Thursday. Cook, who is in his early 50s, joined Apple in 1998 and became CEO in August 2011.
Virtually all of Cook's $376 million bonus in 2011 was in stock awards that will 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.
In terms of base salary, Cook actually received a 50 percent increase to $1.4 million for 2012, and the same 200 percent bonus that other top Apple executives like CFO Peter Oppenheimer earned, Apple said in a regulatory filing on Thursday.
The 2012 compensation package for Cook also pales in comparison with his 2010 pay, which was 14 times higher, when he served as chief operating officer.
But Tim Ghriskey, chief investment officer of Solaris Group - which counts Apple stock as the biggest holding among the approximately $2 billion it manages - said Cook's package was "normal CEO compensation."
For example, Yahoo Inc's CEO, Marissa Mayer, a former Google Inc high-flyer hired this year to try to turn around the struggling Internet icon, won a pay package worth more than $70 million. Despite her lack of a CEO track record, her basic pay is comparable to Cook's, with about $1 million in annual salary and up to $2 million in an annual bonus.
Oracle Corp's Larry Ellison, one of the most highly paid chief executives in the United States - and also the world's sixth-richest man, according to Forbes - received total compensation for the year ended May 31, 2012, of $96.2 million - almost all of it in stock options.
That compared with $77.6 million for Ellison in the prior year.
Cook's longtime boss, Jobs, famously received $1 a year in salary in the three years before he stepped down, though in 2000 he too received a stock option that analysts say was valued at almost $600 million at the time.
Cook will not receive any stock awards for 2012, Apple said in Thursday's filing.
The 2012 package includes a salary of $1.4 million and a nonequity bonus of $2.8 million. Cook's base salary actually increased in 2012 from the $900,000 he earned in 2011.
While Apple's shares are roughly 35 percent higher than when Cook became CEO, they have fallen more than 27 percent since October, when they hit a $700.10 high. The stock has declined amid investor worries about intensifying competition in the mobile phone market and growth prospects in important markets including China.
Apple shares were down 1.3 percent at $506.35 on the Nasdaq on Thursday afternoon.
(Reporting by Sinead Carew and Liana Baker in New York, Jim Finkle and Tim McLaughlin in Boston and Edwin Chan in San Francisco,; editing by Kenneth Barry and Matthew Lewis)
Related Quotes and News
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Back to top
New York Legal
Support & Contact
Connect with Reuters
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
About Thomson Reuters
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.