What you need to know
- Tim Cook ranks 171st in CEO pay within the S&P 500.
- New figures from WSJ show he earns just over the median $13.4 million of S&P 500 CEOs.
- Cook, like Steve Jobs before him, receives most of his compensation from Apple in the form of shares.
Apple CEO Tim Cook has ranked 171st in a list of S&P 500 CEO salaries, despite the fact Apple is the most valuable company within the group.
Median pay reached $13.4 million for chief executives of the biggest U.S. companies in 2020, setting a fifth straight annual record in a year when businesses and their leaders battled a global pandemic.
Most S&P 500 CEOs got raises of about 5% or more as their companies recorded annual shareholder returns of about 8%, according to a Wall Street Journal analysis of data from MyLogIQ.
As the report notes "Most CEO compensation packages are predominantly restricted stock or stock options, as boards continue to emphasize pay structures intended to tie executive pay to the fortunes of shareholders generally." Tim Cook is no different, and in August of 2020 is was reported that his net worth had surpassed $1 billion thanks to awards of hundreds of thousands of Apple shares. Cook was awarded a package in 2011, the final wave of which will vest on August 24 of this year to the tune of another 700,000 shares. He was also awarded another round of stocks worth up to $114 million that will vest in 2023 and then 2025.
In a statement regarding Cook's tenure at the company, Apple's board of directors last year stated:
"Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity. For the first time in nearly a decade, we are awarding Tim a new stock grant that will vest over time in recognition of his outstanding leadership and with great optimism for Apple's future as he carries these efforts forward."
Apple's share price has increased by a whopping 109% in the last year thanks to the success of devices like the iPhone 12, Apple's best iPhone in several years.