Apple's Tim Cook makes a lot of money but won’t be able to use it for years.

Discussion in 'Apple iPad News' started by dgstorm, Apr 10, 2012.

  1. dgstorm
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    dgstorm Editor in Chief Staff Member

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    Most Apple fans might have wondered what it is like to be in charge of one of the most competitive and innovative companies in the world. Perhaps they dreamed about it being the perfect job...

    Tim Cook has a lot of people wishing they were him, but how much does he actually make? It is worth it, when you think of the amount of pressure he is under? According to the New York Times, last year he was awarded $376.2 million worth of stock that expands over 10 years. And, you can add to that perks and bonuses that are worth $1.8 million. That sure seems to be a lot of money.

    When you break it down, it appears that Cook made $1 million a day last year! However, hold your envy because there’s a catch. Apparently, he won’t actually be able to use the money for years, as the company policies require him to keep working for Apple for at least the next 10 years. The proxy statement made with the U.S. Securities and Exchange Commission states this rule clearly:

    "Over the 10-year vesting period and not solely as compensation for 2011."

    So the real numbers are quite different from what the average folk would expect. For example, from the $376.2 million of AAPL stock he was awarded in 2011, Cook did not see any of it.

    Nevertheless, we shouldn't feel too sorry for him. He doesn't work for free after-all, and in fact, his salary amounted to $900,000 last year. Obviously, this is a massive pay check regardless of the stock options.

    Other corporate personalities with huge salaries that made it to the New York Times list include Oracle Corp’s Larry Ellison who made $77.6 million and former Apple retail chief Ron Johnson who cashed in $53.3 million.

    By Radu

    Source: Apple's Tim Cook awarded $378M in 2011, won't see most of it for years
  2. Kaykaykay
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    Kaykaykay iPad Wizard

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    A waiting period is typical for people who receive stock as compensation. Otherwise, companies have no protection against workforce instability. Even employees with measly amounts of shares or options usually have a vesting period or such, but it's especially important with company leaders.
  3. KevinJS
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    KevinJS Super Moderator Staff Member

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    Trouble is with a job like Tim Cook's is that if Apple sees anything of a downturn, his head will roll.

    His job is to keep Apple on top, in spite of anything that the competition might do, and if he fails, he's toast.

    Most of us have some sort of stability based on our everyday performance. People in Cook's position don't enjoy that luxury.

    Sent from my iPad 4 HD mini
  4. Kaykaykay
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    Kaykaykay iPad Wizard

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    Most CEOs of big companies, even if fired, will take home more than most people will earn if a lifetime. And even the fired ones usually go on to high-paying jobs.
  5. KevinJS
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    KevinJS Super Moderator Staff Member

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    That's true too, of course.

    Sent from my iPad 4 HD mini
  6. Synia
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    Synia iPF Noob

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    Wow. That's impressive.
  7. Sichan
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    Sichan iPF Novice

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    Does it say just after how many years will he get those money?

    Since its stock money, that value will fluctuate right?

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