Apple raises pay for Tim Cook, other top executives

Apple's Tim Cook now only uses private jets to travel & gets massive bump in pay

Justin Sullivan Getty Images AFP

In documents filed with the U.S. markets regulator, Apple said the policy was "in the interests of security and efficiency".

That's nearly twice as much as CEO Tim Cook, who earned $12.8 million (£9 million).

Cook earned roughly $12.8 million in total compensation in 2017, the filing noted, an amount that includes his $3 million annual salary, bonuses of $9.3 million and other forms of compensation - including contributions to his retirement savings plan, his life insurance premiums and security expenses.

The company disclosed its pay for Cook and four other top executives with the highest pay.

His top five lieutenants each got bonuses of $3.11 million, bringing their total compensation to about $24.2 million each, including salaries and stock awards.

In 2015, Cook received $10.3 million but this dropped to $8.74 million in 2016 following a slump in demand for iPhones and a sharp downturn in its business in China.

Cook's compensation was almost half those of the $24.1 million packages for CFO Luca Maestri, SVP of hardware engineering Dan Riccio and general counsel Bruce Sewell.

Apple has increased the proportion of performance shares in its equity awards, which boosts potential future earnings for the executives if the company outperforms its S&P 500 peers.

Cook took over Apple's CEO after the late Steve Jobs resigned in 2011 and under Cook's watch, the company's shares have more than tripled.

As an additional security measure for Mr. Cook, the Board also requires that he use private aircraft for all business and personal travel. Cook also incurred $224,216 in security expenses. In November, shortly after the start of the current fiscal year, the company released iPhone X, a long-awaited upgrade to its flagship product.

"Apple was above its target performance goals for both net sales and operating income, resulting in a payout of each named executive officer's annual cash incentive", the company's filing said. Notably absent is Jony Ive, who's arguably one of the most important Apple employees.

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