Apple’s Proxy Statement Reveals Executive Compensation for 2020
Apple’s definitive proxy statement filed with the SEC reveals its executive compensation for 2020.
Not including stock awards, Tim Cook earned $14,769,259 last year. That includes a salary of $3 million, non-equity incentive plan compensation of $10,731,000, and other compensation of $1,038,259.
Cook’s other compensation represents:
(i) Apple’s contributions to Mr. Cook’s account under the 401(k) plan in the amount of $17,100;
(ii) term life insurance premiums paid by Apple in the amount of $2,964;
(iii) vacation cash-out in the amount of $115,385;
(iv) security expenses in the amount of $470,246, which represents the incremental cost to Apple for personal security services provided to Mr. Cook as determined by allocating both direct costs and a percentage of fixed costs incurred by Apple and used to provide such personal security services;
(v) personal air travel expenses in the amount of $432,564, which represents the incremental cost to Apple for Mr. Cook’s personal use of private aircraft based on hourly flight charges and other variable costs incurred by Apple for such use, including variable fuel charges, departure fees, and landing fees. For security and efficiency reasons, the Board implemented a policy in 2017 that requires Mr. Cook to use private aircraft for all business and personal travel.
Apple notes that the final tranches of time-based and performance-based RSUs from Mr. Cook’s 2011 RSU Award are scheduled to vest in August 2021.
During 2021 we will also mark the tenth anniversary of Mr. Cook’s leadership as Apple’s CEO. The Board believes Mr. Cook brings unparalleled innovation and focus to the CEO role, demonstrates what it means to lead with values and integrity, and consistently delivers incredible results for our shareholders. Since his promotion to the role of CEO on August 24, 2011 through the period ended September 25, 2020, Apple’s market capitalization increased by more than $1.5 trillion and Apple’s total shareholder return, including reinvestment of dividends, was 867%. In recognition of his outstanding leadership and with great optimism for Apple’s future as he carries these efforts forward, Mr. Cook was granted an RSU award on September 27, 2020, the first day of Apple’s 2021 fiscal year. The RSU award was determined taking into consideration the size, scope, and success of Apple, and Mr. Cook’s tenure and performance as CEO. This is the first RSU award granted to Mr. Cook since his promotion to the role of CEO in 2011, and will better align his time-based and performance-based equity incentives with those granted to our other named executive officers.
The RSU award granted to Cook in September includes 333,987 shares set to vest in thirds on April 1, 2023, April 1, 2024, and April 1, 2025. Another 333,987 shares are performance-based and are scheduled to vest on October 1, 2023.
More details in the full proxy statement linked below…
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