Apple today published its annual proxy statement, announcing that it will hold its annual meeting of shareholders on March 4, 2022. In addition to announcing the date of the shareholders meeting, the proxy statement also includes a few interesting tidbits about Apple’s business over the last year, including details on executive pay and more.
Here is the breakdown of executive compensation for Apple’s executive team in 2021:
CEO, Tim Cook: $98,734,395 total
- Salary: $3 million
- Stock awards: $82.3 million
- Non-equity Incentive Plan Compensation: $10.7 million
- All Other Compensation: $1.38 million
CFO, Luca Maestri: $26.98 million total
- Salary: $1 million
- Stock awards: $21.96 million
- Non-equity Incentive Plan Compensation: $4 million
- All Other Compensation: $18,883
General Counsel, Kate Adams: $26.97 million total
- Salary: $1 million
- Stock awards: $21.96 million
- Non-equity Incentive Plan Compensation: $4 million
- All Other Compensation: $14,533
SVP of Retail and People, Deirdre O’Brian: $27 million total
- Salary: $1 million
- Stock awards: $21.96 million
- Non-equity Incentive Plan Compensation: $4 million
- All Other Compensation: $61,191
COO, Jeff Williams: $26.97 million total
- Salary: $1 million
- Stock awards: $21.96 million
- Non-equity Incentive Plan Compensation: $4 million
- All Other Compensation: $17,437
In regards to Tim Cook’s compensation specifically, Apple notes in the proxy filling that 2021 marked the 10th anniversary of Cook’s tenure as CEO. During the year, he was granted an equity award for the first time:
In 2021 we marked the 10th anniversary of Tim Cook’s leadership as CEO. It’s been a remarkable decade for Apple and in 2021 Mr. Cook was granted an equity award for the first time since he was promoted to CEO in August 2011. The structure of this award is better aligned with the performance-based and time-based RSUs awarded to our other named executive officers, while the amount recognizes his exceptional leadership and is commensurate with the size, performance, and profitability Apple has achieved during his tenure.
For context, Tim Cook’s total compensation was $14.77 million in 2020, $11.55 million in 2019,
As always, remember that Tim Cook has already said he will be giving away the vast majority of his fortune — and has already started doing so.
Tim Cook’s security and travel costs
Another tidbit that people seem to love every year is how much Apple spends to keep Tim Cook safe and how much Apple spends on his use of a private jet for travel. As always, it’s important to remember that Apple’s Board of Directors implemented a policy in 2017 that requires Cook use private aircraft for all of his business and personal travel for “security and efficiency reasons.”
As such, in 2021, Apple spent $712,488 on Tim Cook’s private aircraft travel. This number includes hourly flight charges and other variable costs incurred by Apple for such use, including variable fuel charges, departure fees, and landing fees. Apple also spent a total of $630,630 on security expenses for Cook.
CEO Pay Ratio
Seemingly because of Tim Cook’s first ever equity grant award, Apple adjusted how it calculated its CEO pay ratio in 2021. The company says that it determined its compensated employee by using base salary, bonuses, commissions, and grant date fair value of equity awards granted to employees in 2021.
As such, the total compensation of Apple’s median compensated employee was $68,254, compared to Tim Cook’s $98,734,394 total compensation. This makes for a CEO pay ratio of 1,447 to 1.
Full document
You can find Apple’s full proxy statement for 2021 below.
FTC: We use income earning auto affiliate links. More.
