In fiscal 2017, Apple CEO Tim Cook received a salary of $3.06 million plus $9.33 million in bonuses and stock worth $89.2 million for a total compensation package of approximately $102 million, reports Bloomberg.
Apple CEO Tim Cook will now fly on private aircraft even for personal travel for “security and safety reasons”, a regulatory filing with the SEC reveals. Separately, his received a massive increase in his annual bonus, thanks to earnings rebound for the company.
According to a new shareholder proxy statement from Apple, the board of directors has approved that Cook must fly on private aircraft whenever he travels, be it for business or personal purpose.
Executive officers at Apple, which included Luca Maestri, Angela Ahrendts, Johny Srouji, Dan Riccio, and Bruce Sewell, all received bonuses of over $3 million, bringing their compensation, including salary and stock awards, to approximately $24.2 million each, provided each stays with the company long enough for awarded stock to vest. Angela Ahrendts, Apple’s retail chief, was the highest paid executive, bringing in $24,216,072.
Over the course of 2017, Cook’s personal air travel expenses amounted to $93,109, and Apple spent an additional $224,216 in personal security costs provided to Cook. Apple has also hired “personal security services” for Cook.
As noted by Bloomberg, Cook received a 74 percent increase in his annual bonus for fiscal 2017 thanks to the earnings rebound after a rare decline in fiscal 2016. His incentive pay is seen to have totaled $9.33 million for the year ended September 30.
The proxy statement also includes six proposals that will require shareholder action at the upcoming shareholders meeting in February. Proposals cover standard actions like re-appointing Apple’s public accounting firm and re-electing board members, along with two shareholder proposals covering proxy access amendments and the establishment of a Human Rights Committee.
Apple’s profit share declined by 30 percent mainly due to an increased mix of previous generation iPhones. In Q4 2017, we estimate that the total profits of Apple will improve driven by its iPhone X sales. Apple exited the quarter with some iPhone 8 inventory due to softer than expected demand compared to the iPhone 7 series.