Photo: Getty Images News
This year, Apple CEO Tim Cook will bring home about $4.2 million. His salary is $1.4 million with a cash bonus of up to 200% ($2.8 million) of that base.How was that salary determined?
CNNMoney says Apple takes multiple factors into account. It looks at the company’s financial results and Cook’s performance, as well as the amount of money other “peer” CEOs make.
It looks at CEO salaries of direct competitors, such as Amazon, Google, Microsoft, HP and Dell. It also looks at the Oracles, Ciscos and IBMs.
In addition, it looks at media CEO salaries, like those of Disney, Time Warner and News Corp executives. It looked at more media companies this year than last year before landing on the magic $4.2 million number.
Cook’s salary jumped up from $900,000 last year, but Apple still claims Cook is receiving compensation that is “significantly below the median cash compensation” of his peer CEOs. Overtime though, he’ll be extremely well paid.
Last year, when Cook was named CEO, he was given 1 million restricted stock units. In four years, he’ll own half of those shares. In August 2021, if he’s still CEO of Apple, he’ll receive the other 500,000. Apple shares are currently at $512. If they stay there and Cook is CEO for the next 10 years, then he’s in line to $512 million, or ~$51 million a year.
Business Insider Emails & Alerts
Site highlights each day to your inbox.