Cook has been CEO at Apple for more than 10 years. He succeeded the company’s late founder, Steve Jobs, who died of cancer in 2011. |
It advised Apple shareholders to vote against Cook’s
big-time payday, flagging “significant concern” about his $82 million in stock
awards for 2021, according to the Financial Times. That came on top of a $12
million cash bonus and a $3 million salary — and expenses racked up like more
than $700,000 on a private jet and $630,000 in private security.
Stockholders of public companies are allowed to vote under
“say on pay” rules, though their voices are merely advisory — a company doesn’t
have to do what they say. Still, if shareholders vote against an executive’s
pay package, it can be seen as an embarrassing black eye for a company, even if
the company doesn’t have to follow the advice.
Institutional Shareholders Service, one of the biggest
companies that advises stock owners on how to vote their shares, has advised
Apple shareholders to vote against Tim Cook’s pay package for 2021, the FT
reported Wednesday.
Apple under Cook has prospered: Its stock is up more than
400% over the past five years vs. the broader market, which is up only 90% over
the same time frame.
But even so, the $100 million pay vote is a jarring
juxtaposition when compared to Apple’s retail workers, who threatened a walkout
in December while demanding better sick leave and working conditions. Apple
last week said it would sweeten the deal for those workers as it looks to
retain staff in a tight labor market.
The iPhone maker said it would offer an enhanced sick time
policy and more vacation days, among other perks. The upgraded benefits will be
available to Apple’s full-time and part-time workers at US stores beginning on
April 4.
Meanwhile, Apple told investors in a regulatory filing last
month that its financial results for sales and profitability had “significantly
exceeded” the maximum goals when explaining the executive payouts.
Shareholder votes are non-binding, though it can sway the
company’s board of directors to take action if the backlash is intense enough.
Cook’s pay rose significantly compared to the previous
fiscal year, when the Apple CEO received $14.8 million in compensation. In
2021, he earned more than 1,400 times the pay of Apple’s average employee,
according to Reuters.
Cook, who celebrated 10 years as Apple CEO last year, has
been credited with leading the company through a turbulent time. He succeeded
the late founder and visionary Steve Jobs, who died of cancer in October 2011.
Under Cook’s watch, Apple became the first company to reach
a market capitalization of $3 trillion.
Earlier this month, the iPhone maker reported $34.6 billion
in profits for the fourth quarter of 2021 — an increase of 20% compared to the
same period a year prior.
The result was impressive considering the ongoing impact of
the COVID-19 pandemic and supply chain issues that have complicated production.
0 comments:
Post a Comment