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Apple Changes Tim Cook's Compensation, Makes It Performance Based

Apple Changes Tim Cook's Compensation, Makes It Performance Based

Posted June 22, 2013 at 12:41am by iClarified · 15047 views
Apple has made changes to CEO Tim Cook's pay package that puts a big chunk of his compensation at risk, reports AllThingsD

If Apple’s stock outperforms the market over the next 8 years, Cook will be able to keep all of the 1 million Apple shares the company promised him back in 2011, which he was previously set to get no matter how Apple’s stock fared. But if Apple’s stock does a lot worse than the market, Cook could lose up to 40 percent of those shares.

Apple says that the changes were made after "outreach discussions this year with many of our largest shareholders". Cook isn't the only one who is having his compensation changed, the company is changing the way it gives out bonuses for all of its top executives.

Cook is reportedly "leading this initiative by example". There is no upside to his new compensation package. At the most he can get the same shares he was promised back in 2011. Apple says it wanted to put less of his shares at risk "because Mr. Cook faces only downside risk from the modification." However, he “expressed a strong desire to set a leadership example in the area of CEO compensation and governance and requested a larger at-risk percentage.”

Cook's million shares were worth $376 million when they were granted, they peaked at $705 million, and at today's stock price they are worth around $413 million.

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Apple Changes Tim Cook's Compensation, Makes It Performance Based

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Rob - June 23, 2013 at 8:50am
Why promise so much money for 8 years work. Who needs these crazy amounts of money?
xol - June 23, 2013 at 3:11am
the way apple is heading this kneegrow will be broke in 2-3 years
Russell Rhoades
Russell Rhoades - June 24, 2013 at 1:10pm
No he will never be broken, Apple Has About 30 to 45 years of Idea's left to the from Steve Jobs , I don't Know if you know but he designed the iPad on a napkin back it the 70's Apple will only grow, It will have some up's and Down's but they will end on top of the market and Mr cooks stocks will be worth more than his grant grand children can spend in one life time.
NoGoodNick - June 24, 2013 at 6:34pm
A lifetime? No one is promised tomorrow. Use ur brain crackhead. Wait, u ain't got brain. Retard!
Ralph - June 22, 2013 at 6:42pm
I think this is a bad move for Apple. They're known for their innovation, and creating incentives centered around the stock price puts more of a pressure on short term success, which hinders innovation because innovation is more of a long term/delayed benefit
Jack b
Jack b - June 22, 2013 at 9:57am
I think that Steve Jobs must have decided to trip one last time before his tragic death. During that trip, he probably appointed Tim Cook as CEO. Any other story and I won't believe it
jack lamer
jack lamer - June 22, 2013 at 4:51am
bullshit ... he gets money money tons of money no matter what, screw innovation for god's sake old man has no guts to copy even screen size fom samsung because he is afraid size of chinese hands !
Steve Cook
Steve Cook - June 25, 2013 at 12:30am
Actually, I was trying to make sure the little hands of the little fat american's can still grip the phones not the Chinese hands but thanks for assuming.
El Compa
El Compa - June 22, 2013 at 2:34am
He won't be ok if the company goes bankrupt. Apple better start being innovative again. We miss Steve Jobs.
Jedediah Johnson
Jedediah Johnson - June 22, 2013 at 12:58pm
Well too bad. Steve isn't coming back. I miss his presence too. Get over it already. And with the money they have stockpiled it would take them 20 years to go bankrupt.
Glenn - June 22, 2013 at 1:03am
Somehow I think he'll be okay, no matter what....
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