Tim Cook's latest salary was revealed from a proxy report that Apple registered on Thursday (6/1). From the report revealed a very significant increase in the salary received by Cook compared to 2020.
As CEO of the most valuable and profitable company, Cook earns a total annual fee of USD 98.7 million. More than six times higher than his 2020 fee, which was 'only' USD 14 million.
Cook's pay consists of a fixed base salary of USD 3 million, incentives of USD 12 million, and a stock bonus of USD 82 million. There are also additional security costs and private flights, because since 2017 Apple has not allowed its CEO to fly on commercial aircraft.
In total, the cost that Apple spends on Cook for a year is almost USD 100 million, as quoted by us from The Verge, Sunday (9/1/2022).
Of course, Cook's payment does not include shares worth more than USD 750 million that will be received by Cook at the end of 2021, which is the last 'bonus' that is part of the agreement when he was CEO of Apple.
Cook will receive a bonus from the contract 10 years ago. The bonus is in the form of five million Apple shares, which, based on Apple's current stock price, is worth nearly $750 million.
This bonus itself is given because Cook can reach the target set when he signed his contract. That is, Apple's stock returns over the three years ended must be higher than the stock returns of two-thirds of companies in the S&P 500.
Cook's ability to lead Apple itself was actually doubted by other Apple executives. But Cook then took various 'interesting' steps, such as increasing the largest iPhone screen size to 6.7 inches, making the Apple Pencil, and so on. Called interesting because Jobs once made fun of the idea.
But Cook's steps proved effective, as Apple's revenue continued to grow significantly from year to year. Also the value of Apple's stock rose 1.100%, which made Apple the first company in the US whose valuation reached USD 1 trillion, and then passed the valuation of USD 2 trillion, and even now has reached a valuation of USD 3 trillion.
