What you need to know
- A shareholder group says it has significant concerns over Tim Cook's pay.
- Institutional Shareholder Services says that Cook's perks also significantly exceed those of other companies.
- Shareholders will vote on executive compensation at their annual meeting next month.
A shareholder advisory group has raised 'significant concern' over the amount of compensation Tim Cook receives as CEO of Apple.
Financial Times reports:
A top shareholder advisory group has recommended that Apple investors vote against Tim Cook's $99mn pay and bonuses package, forcing one of Silicon Valley's most prominent campaigners on equality to defend his remuneration at the world's most valuable company.Institutional Shareholder Services has told its clients in a letter seen by the Financial Times that there "is a significant concern" with the stock award Cook received last year, which was the Apple chief's first since 2011. ISS last recommended against Apple's pay in 2015.
As the report notes last year Tim Cook received a salary of $3 million, a $12 million bonus, and an $82 million stock award. He also received perks including personal security and expenses for a private jet that raised eyebrows:
The 61-year-old executive's pay package also included $630,630 in personal security costs and $712,488 for personal use of a private jet — perks that ISS said "significantly exceeded" comparable companies last year — taking Cook's total for 2021 to $98.7mn.
Cook received a new stock incentive package last year to mark a decade at the helm of the world's most valuable company, and has overseen launches of some of the company's best iPhones, iPads, Macs, and more. He has also guided the company towards its transition from Intel to Apple silicon. As the report notes, returns on Apple stock under Cook's leadership are now over 1,000 percent, including a 30 percent leap in the last year alone.
Any vote of shareholders on executive compensation is advisory, so even if it doesn't have popular support among the group Apple's board may still be minded to pass the proposed measures for this year.
