- Apple CEO Tim Cook received $98.73 million in compensation in the company's fiscal 2021, according to an SEC filing published on Thursday.
- The majority of his compensation comes from a stock grant valued at $82 million granted on the first day of Apple's fiscal 2021 that hasn't vested yet.
- The official compensation amount does not include $754,000,000 of shares from an old grant that vested in August.
The pay disclosure comes after a stellar year for Apple in which it reported 33% revenue growth and more than $365 billion in sales. The disclosure covers Apple's fiscal year, which began in September 2020 and ran through September 2021.
Here's how Cook's pay breaks down:
- $3 million in salary
- $12 million bonus for hitting Apple financial and environmental sustainability goals
- $1.39 million in other compensation, including $712,488 in personal air travel, $630,630 in security, a $17,400 contribution to his 401(k) plan, $2,964 in life insurance premiums, and $23,077 in vacation cash-out.
- $82.35 million in stock awards
Those stock awards are part of a five-year grant announced in Sept. 2020 on the first day of Apple's fiscal 2021. They haven't vested yet and they are in two parts.
The first part is 333,987 shares of Apple, valued at $37.5 million at the time of the grant, that will vest in three annual installments starting in 2023. Cook will receive these shares even if he retires, according to the filing.
The second part is also 333,987 shares of Apple, but the grant is performance-based, and the number of shares Cook receives could double or go to zero based on Apple's stock performance. These shares will vest in Oct. 2023 and were valued at $44.85 million at the time of the grant. These shares will also vest if Cook retires, although a compensation committee of the board of directors can stop it, according to the filing.
"It's been a remarkable decade for Apple and in 2021 Mr. Cook was granted an equity award for the first time since he was promoted to CEO in August 2011," Apple said in the filing.
Cook's 2021 compensation does not officially include over 5,000,000 shares of Apple that vested in Aug. 2021, worth over $754,000,000 at the time, according to the filing. Those shares were granted back in 2011, around the time that Cook took over as CEO.
In 2021, Cook's compensation was 1,447 times the median Apple employee's total compensation of $68,254, according to the filing, although Apple said that the ratio is not comparable to the ratio reported by other companies because of differences in how the median employee is determined.
Cook plans to donate his fortune to charity, he said in 2015.
Apple said in its proxy that it determined Cook's stock awards by considering Apple's size, performance, and Cook's role and performance as CEO.
Apple also said that the board's compensation committee takes into account Apple's profitability compared to a basket of peer companies, including Alphabet, Microsoft, Amazon, and Facebook parent Meta.
This year, for compensation purposes, Apple added Tesla to a "secondary peer group" of companies that have "iconic" brands and rely on significant research and development for growth.
An Apple representative declined to comment.