Tim Cook gets a 47 percent pay raise in 2017

For Apple CEO Tim Cook, Santa Claus came this Christmas season to drop down his chimney a 47 percent pay raise and the use of a private aircraft.

Cook, who has been Apple’s CEO since 2011, has seen his salary rise to $12.8 million in 2017 from $8.7 million last year, according to a SEC filing from Apple on Wednesday. In 2016, Cook actually saw his salary dip $1.5 million from the year before due to Apple falling short of its financial goals thanks to slumping iPhone sales and a downturn in Apple’s business operations in China.

This year, Apple saw a major rebound across nearly all of its categories. In its last quarter earnings, Apple saw a 2 percent increase in iPhone sales, a 12 percent growth in China, and a whopping 34 percent boost in its services sector, which include Apple Pay, Music, App Store and iCloud among others from a year prior.

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And with the iPhone 8 and X in the market, Cook hoped for Apple’s strong fiscal year ever in 2018.

“I couldn’t be more excited about Apple’s future,” said Cook during a call with analysts to discuss the company’s quarterly earnings in November. “As we approach our holiday season, we expect it to be our biggest quarter ever.”

Cook’s pay raise this year came mostly from cash bonuses; $9.3 million were added to Cook’s $3 million annual salary. Cook’s cash bonus was the largest among the six senior Apple executives.

But Cook’s overall pay compensation was the lowest among the 6 senior executives. The other five executives all earned over $24 million.

Senior retail vice president Angela Ahrendts eked out the highest paid honor by less than $100,000 due to additional compensation to help Ahrendts — the former Burberry CEO — move “closer to Apple’s headquarters”, according to the SEC filing.

Cook’s real wealth comes from his stock options. Cook owns 560,000 shares awarded to him in 2011 and vested in fiscal 2017 year which was valued at $89.2 million. Cook also has about 2.9 million additional unvested that haven’t vested, according to the filing, worth over $450 million, according to the SEC filing.

New:As for a more immediate present from Apple, Cook was given the use of traveling on a private aircraft which is to be used for all business and personal travel. (End new) For personal travel, Cook used $93,109 in fiscal 2017 year, according to the SEC filing. Cook also incurred $224,216 in security expenses.

“As an additional security measure for Mr. Cook, the Board also requires that he use private aircraft for all business and personal travel,” wrote Apple in the filing. “This policy was implemented in 2017 in the interests of security and efficiency based on our global profile and the highly visible nature of Mr. Cook’s role as CEO.”

The private aircraft privilege may extend to other Apple executives but only for when the aircraft will “facilitate travel that is directly and integrally related to the performance of their job duties and when the use of private aircraft will increase efficiency or security associated with a particular trip.”

Cook, along with other Apple board directors such as Disney CEO Bob Iger, former U.S. Vice President Al Gore, and former Northrop Grumman CEO Ron Sugar, are up for election to remain in the board another year.

The election is set to occur on Apple’s next shareholders meeting February 13 at the Steve Jobs Theater in Apple Park.

This post has been updated with a clarification. The article previously stated Tim Cook received a private plane when he actually received the use of a private aircraft. 

Photo: CHICAGO, IL – OCTOBER 20: Apple CEO Tim Cook greets guests at the grand opening of Apple’s Chicago flagship store on Michigan Avenue October 20, 2017 in Chicago, Illinois. The glass-sided store sits on shore of the Chicago River in the city’s downtown. (Photo by Scott Olson/Getty Images)

 

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  • omegatalon

    Makes you wonder what stockholders will think of Tim Cook if Apple loses a class-action lawsuit for throttling down performance of iPhone and iPad then ordered to buy back every effected product.

  • Mark Wialbut

    We can see where that big corporate tax break is going to be spent…the rich get richer. As the owner/user/advocate Apple products since the IIe I honestly think they’ve lost the trail of bread crumbs. Mac OS is an abominable bloated POS and the latest and greatest iPhone is about as innovative as a different colored brick. While Mr. Cook maybe able to squeeze more and more profit out of the now designer brand that is Apple, under his stewardship nothing truly innovative has been birthed. And he gets a whooping bonus and raise. Wonderful, makes me want to puke.

 
 
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