Apple CEO Tim Cook made $377,996,537 in 2011 reveals Apple's proxy statement for its 2012 annual meeting of shareholders.
That amount is staggering, especially when compared with Steve Jobs' annual salary of $1. Much of the compensation comes from one million restricted stock units that were awarded the new CEO.
In connection with Mr. Cook's appointment as CEO and as noted above, the Board granted Mr. Cook 1,000,000 RSUs as a promotion and retention award. Fifty percent (50%) of Mr. Cook's award is scheduled to vest on August 24, 2016 (five years after the award date) and fifty percent (50%) of Mr. Cook's award is scheduled to vest on August 24, 2021 (ten years after the award date), subject to Mr. Cook's continued employment with the Company through the applicable vesting date.
Cook's unvested RSUs will be forfeited if his employment terminates in any circumstances, other than death or disability. The Board noted that the amount of Cook's RSU award was subjective.
The award was the product of the Board's business judgment, which was informed by the experience of the Board members, the input received from Mr. Jobs, and the Board's assessment of Mr. Cook's performance in assuming responsibility for the Company's day-to-day operations during Mr. Jobs's prior leaves of absence. The Board also took into account the 10-year vesting period of the award, the importance of retaining Mr. Cook, and the opportunities Mr. Cook would likely have if he were to seek other employment. Finally, the Board considered the value of Mr. Cook's existing equity awards that are scheduled to vest in 2012 and 2014 to encourage his short-term retention.
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That amount is staggering, especially when compared with Steve Jobs' annual salary of $1. Much of the compensation comes from one million restricted stock units that were awarded the new CEO.
In connection with Mr. Cook's appointment as CEO and as noted above, the Board granted Mr. Cook 1,000,000 RSUs as a promotion and retention award. Fifty percent (50%) of Mr. Cook's award is scheduled to vest on August 24, 2016 (five years after the award date) and fifty percent (50%) of Mr. Cook's award is scheduled to vest on August 24, 2021 (ten years after the award date), subject to Mr. Cook's continued employment with the Company through the applicable vesting date.
Cook's unvested RSUs will be forfeited if his employment terminates in any circumstances, other than death or disability. The Board noted that the amount of Cook's RSU award was subjective.
The award was the product of the Board's business judgment, which was informed by the experience of the Board members, the input received from Mr. Jobs, and the Board's assessment of Mr. Cook's performance in assuming responsibility for the Company's day-to-day operations during Mr. Jobs's prior leaves of absence. The Board also took into account the 10-year vesting period of the award, the importance of retaining Mr. Cook, and the opportunities Mr. Cook would likely have if he were to seek other employment. Finally, the Board considered the value of Mr. Cook's existing equity awards that are scheduled to vest in 2012 and 2014 to encourage his short-term retention.
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