Apple's boss in massive pay cut

Written By Unknown on Jumat, 28 Desember 2012 | 20.24

27 December 2012 Last updated at 16:49 ET

Tim Cook will take home a salary of just 1% of the $378m (£235m) he received to be Apple's boss last year.

In a regulatory filing, the iPhone-maker's head said he would get a salary of $1.4m and a bonus of $2.8m for 2012.

Most of his money from 2011 came from a grant of shares awarded for becoming the chief executive, and Apple said he would not get any new shares.

"Mr Cook's target cash compensation remains significantly below the median for CEOs of peer companies," it said.

Last year, following the death of co-founder Steve Jobs, Mr Cook received a bonus in the form of stock of more than $370m, making him reportedly the best-paid boss in the US.

His base salary was $900,000. His predecessor, Steve Jobs, famously had an annual salary of $1.

Mr Cook's salary was raised to $1.4m and he received a bonus of 200% of his salary for exceeding Apple's own targets in a year when its profit grew 61% to $41.7bn and Apple became for a time the most valuable company in the world.

"Mr Cook did not receive an RSU [restricted stock unit] award in 2012 in light of the RSU award he received in connection with his promotion to CEO in August 2011," Apple said.

It added: "Following a recommendation by Mr Cook to the Compensation Committee, the company adopted stock ownership guidelines for the CEO and the non-employee directors. Under the guidelines, Mr Cook is expected to own shares of company common stock that have a value equal to ten times his base salary."

His colleagues received hefty pay packages after a successful year. Bob Mansfield, senior vice president of technologies, will get almost $86m and chief financial officer Peter Oppenheimer will receive $68.6m.

Earlier this year, Apple's shares touched a high of $644, surpassing $600bn in market value and making the company the world's most valuable firm.

Apple's share price has dropped 24% in the last three months and is now around $515 a share.


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