
Apple
CEO Tim Cook got a hefty cash bonus that brought his total compensation
to $9.2 million (roughly Rs. 56 crores) last year. That’s more than
double what he received the previous year, as the company enjoyed a
surge in sales and profit fueled by the popularity of its new,
over-sized iPhone 6 models.
Cook’s
pay for fiscal 2014 included $1.7 million (roughly Rs. 10 crores) in
salary and $6.7 million (roughly Rs. 41 crores) in incentive pay that
was awarded by Apple’s board after he beat the performance goals that
directors had set for him, according to a regulatory filing. He also
received $774,176 in other compensation, including a 401k contribution,
company-paid insurance premiums and security expenses.
Apple
reported $182.8 billion (roughly Rs. 11,22,571 crores) in revenue for
the fiscal year that ended September 27 and $39.5 billion (roughly Rs.
2,42,568 crores) in profit, after seeing record sales last fall. Sales
of iPhones rose 21 percent in the company’s fourth quarter, which made
up for a decline in sales of iPads. Apple’s annual revenue has increased
in each of the last three years.
Cook
and the company’s other top officers were awarded the maximum bonus
possible under Apple’s incentive plan, after the company’s annual
revenue and $52.5 billion (roughly Rs. 3,22,401 crores) in operating
profit each exceeded the plan’s maximum goals by 7 percent, the filing
said.
The
Associated Press calculates an executive’s total compensation by
counting salary, bonuses, perks, stock and options awarded during the
year.
Despite
his bonus, Apple’s CEO collected less than the company’s four other top
officers, all of whom garnered sizable stock awards. The highest paid
was Senior Vice President Angela Ahrendts, the former CEO at luxury
goods maker Burberry who was hired in May to run Apple’s retail
operations. Her $73 million (roughly Rs. 448 crores) pay package
included a hiring bonus of $33 million (roughly Rs. 202 crores) in
restricted Apple stock grants and another $37 million (roughly Rs. 227
crores) in restricted stock grants that Apple said were intended to
compensate for Burberry stock that she forfeited on leaving her old job.
While
Cook’s total pay has increased for the last two years, it still pales
against the $378 million in cash and stock grants he was awarded when he
took the CEO job in 2011.
Apple
reported the compensation figures in advance of its annual shareholder
meeting on March 10. The company also announced that board member
Millard “Mickey” Drexler, will retire when his term expires at that
meeting. Drexler, 70, is CEO of J. Crew and former CEO of the Gap retail
chain. Apple said a replacement has not been nominated.
Apple
shares closed Thursday at $112.40, up 2.6 percent for the day and more
than 40 percent in the past year. With a stock market value of $659
billion, Apple is the most valuable company in the world.
Posted by : Gizmeon
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