In 2018, iPhone maker Apple gave its chief executive Tim Cook a substantial pay raise of more than 20 percent, bringing his total compensation for the year to almost $15.7 million, a new filing submitted to the SEC reveals.
The figure includes a base salary of $3 million, a $12 million bonus received for achieving performance sales goal and targeted operating income, as well as $680,000 in what the company identified as "other compensation," which reportedly covers Cook's private jet fare and security expenses.
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"For 2018… we achieved net sales of $265.6 billion and operating income of $70.9 billion, each representing a year-over-year increase of 16 percent, and exceeding the 2018 maximum annual cash incentive program goals for both of those performance measures," the filing reads.
THE PROCEEDS DO NOT INCLUDE HEFTY STOCK INCENTIVES THAT THE CUPERTINO-BASED COMPANY PROVIDES TO ITS CHIEF EXECUTIVE AS PART OF A 2011 GRANT. IN AUGUST, THE CEO CASHED IN $121 MILLION OF VESTED STOCK. COOK STILL OWNS MORE THAN 1.5 MILLION APPLE SHARES WORTH ABOUT $189 MILLION AT THE CURRENT SHARE PRICE.
THE TECHNOLOGY GIANT ALSO REVEALED THAT THE ANNUAL TOTAL COMPENSATION OF A "MEDIAN COMPENSATED EMPLOYEE" COMPRISED $55,426. THAT MEANS THAT OF APPLE'S 132,000 EMPLOYEES, HALF MAKE LESS THAN THAT, AND HALF MAKE MORE. ACCORDING TO THE DOCUMENT, COOK'S COMPENSATION WITHOUT HIS RESTRICTED STOCK IS 283 TIMES THE COMPANY'S MEDIAN WORKER EARNS.
It was the second year in a row that the 58-year-old CEO got a major pay raise. In 2017, Cook received $12.8 million, while in 2016 he made $8.7 million. 2018 became gainful for other Apple executives. CFO Luca Maestri, general counsel Kate Adams, retail head Angela Ahrendts, and COO Jeff Williams all made over $26 million each, according to the document.
"We believe the compensation paid to our named executive officers for 2018 appropriately reflects and rewards their contributions to our performance and is aligned with the long-term interests of our shareholders," Apple says.