Thursday, January 12, 2012

Tim Cook's $375 million year: By the numbers (The Week)

New York ? In 2011, Apple's new CEO was awarded stock options worth hundreds of millions of dollars, making his $900,000 salary look paltry by comparison

It's good to be Tim Cook. An Apple filing earlier this week revealed?that the company's new CEO received a $376 million stock award in 2011, on top of a base $900,000 salary. Here, a brief guide, by the numbers, to Cook's big payday:

1 million
Restricted stock units?the Apple board awarded Cook when he took over from former CEO Steve Jobs. This was widely seen as an attempt to express confidence in Cook and retain him for many years to come. Half of the shares will vest in 2016, the other half in 2021.

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$376 million
Value of those shares when they were granted on August 24, 2011. "As far as a singular award, we haven't seen anything this large in a long time," says Aaron Boyd, the chief of executive compensation firm Equilar.

$420 million
Value?of a million shares of Apple stock today

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$427.75
The all-time?high?price that Apple shares reached on Tuesday

40 million
Stock options?that Steve Jobs was given by Apple in early 2000. According to Boyd, that's the only one-time stock award worth more than Cook's. At the time, it was worth more than $600 million.

$900,017
Tim Cook's salary in 2011. Because the stock package has to vest, Cook didn't really make hundreds of millions of dollars last year, says Philip Elmer-DeWitt at Fortune. The stock units are worthless at present. Still, given the great year Apple had, you could argue that "if Tim Cook had been paid $378 million in 2011? he [would have been] worth it."

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$14,700
Amount?Cook contributed to his 401(K) account in 2011

$1.4 million
Cook's new annual base salary, after a raise he received at the end of 2011. That puts Cook "on the very high end of the salary spectrum" among tech CEOs,?says Zack Whittaker at?ZD Net.

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$682,000
Microsoft CEO Steve Ballmer's?salary?for 2011

$1
Annual salary?Jobs received from 1997 until his death. He typically collected no bonus, though in 2001, he did get an extravagant gift: The company bought him a $90 million Gulfstream V airplane.

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$7 billion
Jobs' estimated worth shortly before his death in October. Much of Jobs' wealth came from Walt Disney Co. Jobs bought animation studio Pixar in 1985, then Disney acquired it in 2006, making Jobs one of the company's largest shareholders. In 2010, he held $4.4 billion worth of Disney stock and $1.4 billion worth of Apple shares. "Jobs could afford to skip the salary payments," says David Goldman at CNN Money.

$108 billion
Apple's revenue?in fiscal year 2011

Sources: CNN Money, Fortune, Giga Om, Google Finance, Redmond Pie, Reuters, ZD Net

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