t's good to be Tim Cook. An Apple filing earlier this week revealed that the company's new CEO received a $376 million stock award in 2011, on top of a base $900,000 salary. Here, a brief guide, by the numbers, to Cook's big payday:
Restricted stock units the Apple board awarded Cook when he took over from former CEO Steve Jobs. This was widely seen as an attempt to express confidence in Cook and retain him for many years to come. Half of the shares will vest in 2016, the other half in 2021.
Value of those shares when they were granted on August 24, 2011. "As far as a singular award, we haven't seen anything this large in a long time," says Aaron Boyd, the chief of executive compensation firm Equilar.
Value of a million shares of Apple stock today
The all-time high price that Apple shares reached on Tuesday
Stock options that Steve Jobs was given by Apple in early 2000. According to Boyd, that's the only one-time stock award worth more than Cook's. At the time, it was worth more than $600 million.
Tim Cook's salary in 2011. Because the stock package has to vest, Cook didn't really make hundreds of millions of dollars last year, says Philip Elmer-DeWitt at Fortune. The stock units are worthless at present. Still, given the great year Apple had, you could argue that "if Tim Cook had been paid $378 million in 2011… he [would have been] worth it."
Amount Cook contributed to his 401(K) account in 2011
Cook's new annual base salary, after a raise he received at the end of 2011. That puts Cook "on the very high end of the salary spectrum" among tech CEOs, says Zack Whittaker at ZD Net.
Microsoft CEO Steve Ballmer's salary for 2011
Annual salary Jobs received from 1997 until his death. He typically collected no bonus, though in 2001, he did get an extravagant gift: The company bought him a $90 million Gulfstream V airplane.
Jobs' estimated worth shortly before his death in October. Much of Jobs' wealth came from Walt Disney Co. Jobs bought animation studio Pixar in 1985, then Disney acquired it in 2006, making Jobs one of the company's largest shareholders. In 2010, he held $4.4 billion worth of Disney stock and $1.4 billion worth of Apple shares. "Jobs could afford to skip the salary payments," says David Goldman at CNN Money.
Apple's revenue in fiscal year 2011
Sources: CNN Money, Fortune, Giga Om, Google Finance, Redmond Pie, Reuters, ZD Net
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- Why is American internet so slow?
- Don't worry: World War III will almost certainly never happen
- What would a U.S.-Russia war look like?
- What the collapse of the Ming Dynasty can tell us about American decline
- 22 TV shows to watch in 2014
- Russia's Ukraine invasion is a moral crisis
- 4 life hacks from ancient philosophers that will make you happier
- The Daily Show explains Hamid Karzai's 'Afghan Hustle'
- Another Bitcoin exchange bites the dust
- The end of academic freedom?
Subscribe to the Week