Apple CEO Docked His Own Pay By $4 Million

Tim Cook urged the board to align his compensation with the company’s underperforming stock

  • Share
  • Read Later

Like TIME on Facebook for more breaking news and current events from around the globe!

LiSong / Imaginechina / AP

Apple CEO Tim Cook

Apple CEO Tim Cook took a $4 million pay cut this year, after he urged the company’s board of directors to link half of his stock grants — which make up the bulk of his compensation — to the company’s performance on Wall Street.

Cook made the decision out of a “strong desire to set a leadership example in the area of CEO compensation and governance,” Apple said in a filing Sunday, CNN reports.

The pay cut represents just 10 percent of Cook’s overall compensation, which includes a $1.4 million salary, $2.8 million cash bonus and $36.4 million in stock grants.

[CNN]

3 comments
tfgmg
tfgmg

I'll give him a little credit, Apple is a consumer brand, not tech.  It's a small step in a good direction


buckfush
buckfush

Stock price used to be more closely related to value.  Increase a company's value and the price goes up. Now so much of price is related to perceived future value that it just doesn't make sense to link compensation to stock price. Better to use metrics like return on capital employed. 

robertbradf
robertbradf

“Apple must show some connection between the patented feature and demand for Samsung’s products. It should prove that the features were contributing factor in the smartphone purchase selection among other considerations.” http://bit.ly/AppleBannedSamsung