Tim Cook, Apple’s chief executive officer, saw his overall pay package increase by 28% for the tech giant’s 2020 fiscal year, according to a regulatory filing.
Cook’s base salary remained at $3 million for Apple’s 2020 fiscal year — the same as it was in 2019 and 2018 — but his non-equity incentive plan compensation rose to $10.7 million, up from $7.7 million the year prior. His total compensation for the most recent fiscal year was about $14.8 million.
“In 2020, Apple’s performance exceeded the target performance goals for both net sales and operating income, resulting in a total payout of 179% of the target payout opportunity for each named executive officer,” the company explained in the proxy filing Tuesday.
During the fiscal year ended Sept. 26, 2020, Cook had restricted stock units worth $281.9 million that vested. He also held 3.92 million stock units, worth about $440 million as of Sept. 25, scheduled to vest on Aug. 24, 2021.
Apple also noted that, for the first time since Cook was promoted to the CEO role in 2011, his 2021 compensation includes a long-term equity award. Last September, the exec was granted a minimum of 333,987 restricted stock units and could receive up to 1 million RSUs depending on company performance, set to vest through 2025.
“Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity. For the first time in nearly a decade, we are awarding Tim a new stock grant that will vest over time in recognition of his outstanding leadership and with great optimism for Apple’s future as he carries these efforts forward,” Apple’s board of directors said in a statement.
In fiscal 2020, Apple’s median employee compensation was $57,783, meaning the ratio of Cook’s total pay to median employee was 256 to 1.
Apple’s proxy filing also said that beginning in 2021, an “environmental, social, and governance modifier based on Apple Values and other key community initiatives” will be incorporated into the company’s annual cash incentive program. That’s intended to “further motivate Apple’s executive team to meet exceptionally high standards of values-driven leadership in addition to delivering strong financial results,” the company said.
In determining exec compensation for fiscal 2020, Apple said that it added Netflix to the primary peer group (which comprises companies including Disney, Comcast, Amazon and Alphabet), while it removed 20th Century Fox and Time Warner due to acquisitions.
Among other compensation, Cook’s pay package for fiscal 2020 included a vacation cash-out in the amount of $115,385, personal air travel expenses in the amount of $432,564, and security expenses in the amount of $470,246, which represents “the incremental cost to Apple for personal security services provided to Mr. Cook as determined by allocating both direct costs and a percentage of fixed costs incurred by Apple and used to provide such personal security services.”