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Tim Cook's total 2011 to amount to over $378 million

updated 03:30 pm EDT, Mon April 9, 2012

Most money still relegated to stocks

In all Apple CEO Tim Cook pulled in about $378 million in 2011, even if most of that money won't be available to him for years, according to the New York Times. The bulk, $376.2 million, consisted of a one-time stock grant that won't vest unless Cook stays with Apple for 10 years. In terms of immediate pay, his combined salary, bonuses, and miscellaneous perks during the year amounted to $1.8 million.

On its own Cook's salary was a comparatively small $900,000. Although still more than most Americans make, the Times points out that the figure is well below the median for American CEOs, $14.4 million. Cook does become the best-compensated CEO of 2011 if stocks are included; second place belongs to Oracle's Larry Ellison at $77.6 million, while third is actually attributed to former Apple retail head Ron Johnson, now with JC Penney, who pulled in $53.3 million via his new role.

Another notable executive in the top 10 is Disney's Bob Iger, coming in at seventh place with $31.4 million. Iger joined the Apple board of directors in November, re-establishing a direct link between the two companies after the death of Apple co-founder Steve Jobs. The latter had significant influence over Disney thanks to his one-time ownership of Pixar, which resulted in his becoming Disney's biggest individual shareholder. Jobs helped out Disney by regularly promoting the company's content on the iTunes Store and in other marketing.



By Electronista Staff
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Comments

  1. pottymouth

    Forum Regular

    Joined: Nov 2003

    +5

    comment title

    I'm only about 75% in favor of the 99% movement, but it sure is hard to justify how anybody could possibly be worth that much.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +4

    numbers for confusion

    These numbers sound large, but they should be taken in context of the time span. They're only good in 10 years, and, in theory, they should be pro-rated in terms of salary over that 10 years. Otherwise, his salary will look inflated this year, and then for the next 9 look "Wow, he's being paid peanuts. Way to go Tim for showing constraint!". Steve Jobs' salary was the same way.

    So it should be looked at like $37 million a year.

    At least Apple's board shows wisdom (with Bill Campbell still on it, it's hard to imagine, but I guess it can happen) by making it a 10 year vesting. So much of corporate america is based on short-term strategies and bonuses that it leads to (a) gutting a company in order to meet stock price targets and the like, (b) making decisions that will benefit those in the short term but are bad for the overall health of the company, or (c) giving the execs reasons to pull an Enron or Goldman on their investors, cook the books, so they can get their bonuses before everything comes crashing down.

  1. chas_m

    Moderator

    Joined: Aug 2001

    +5

    Reply

    Ignoring the stock for a moment, $900,000 salary for being the CEO of a company that makes billions every quarter seems very reasonable to me. Cook also raised the salaries of the SVPs as well.

    The stock numbers are routinely under-explained, and this is no exception. The figure you see in the article is an imaginary one, extrapolated from the idea that the stock would be worth as much as it is today, 10 years from now when it vests.

    It could be worth a lot more. It *could* be worth a lot less -- just read a report last night from MIT that predicts another, bigger stock meltdown before long -- so there's no actual knowing until they vest. Assuming capitalism is still functioning in 10 years, I'd guess the stock will be worth more than it is now, so he'll actually end up with more money than $378M or whatever, but it will also be worth less than it is now (inflation).

    You're right that's a ridiculously large sum, but OTOH let's think about how much wealth, jobs and general money this guy will likely be responsible for creating over the next 10 years. If the last 10 years is a guide, wow.

    Lastly, the 99 percent movement is definitely NOT anti-rich people. They are, however, very against abuses of the capitalist system through avarice and disloyalty, which has been taken to extreme measures by (to lump it generally but inaccurately) Wall Street and the Banksters.

    Some are anti-capitalist or say they are, but this is a fringe part of it IMO since they can't (or at least haven't been able to) propose anything viable to replace captialism with. Well-regulated capitalism, like a well-regulated militia, is necessary to the security of a free state.

  1. thinkman

    Fresh-Faced Recruit

    Joined: Jan 2005

    +1

    NYT Redux

    How wonderful of you to reprint this misleading information verbatim from the NYT. They have become the leaders in obfuscation, and now you are following in their footsteps! Congrats! You just took 10 steps backward.

  1. Flying Meat

    Dedicated MacNNer

    Joined: Jan 2007

    0

    It's just the headline that

    is misleading. The article spells out the details pretty clearly.

  1. facebook_Alex

    Via Facebook

    Joined: Apr 2012

    +2

    So about 2/3 of the average NHL player then..

    The "average" NHL player gets 2.4 million a year.. So his 1.8 this year seems a wee bit low in comparison...

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -1

    but

    It all depends on how it is accounted for on the books. If the books list it as a $378 million outlay, then that's what he 'earned' this year.

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