According to The Wall Street Journal, Apple’s CEO, Tim Cook earned $14 million in 2020. The pay is modest in comparison to other CEOs on the Standard and Poor’s 500 (S&P 500) index.
Mr.Cook took over Apple’s management after the demise of founder and former CEO Steve Jobs and the company has boomed under his leadership. In addition to existing products, Tim Cook introduced attractive new devices, services, and features like Apple Watch, M1-based Macs and iPads, Apple Music, Fitness+, Apple TV+ and more. In addition, the company has become more inclusive and has launched initiatives to fight systemic racism in the United States which provide learning opportunities to unrepresented minority groups.
His vision, persistence, and passion have made Apple the first U.S company to achieve $2 trillion market value and reports estimate that in coming years it will reach $3 trillion. Investor Warren Buffet, who is known for staying away from tech stocks, now has 5.3% of Apple stocks. At the annual Berkshire Hathaway shareholders meeting, Buffet said that Tim Cook is a fantastic manager and does things his own way.
Tim Cook was underappreciated for a while. He’s one of the best managers in the world. And I’ve seen a lot of managers. And he’s got a product that people absolutely love
it’s an extraordinary business. But I do want to emphasize that, in his own way– it’s a different way– but Tim Cook is– we see a lot of managers of a lot of businesses, and you’re looking at two great ones on both ends here. He’s handled that business so well. He couldn’t do what Steve Jobs obviously could do in terms of creation. But Steve Jobs couldn’t really, I don’t think, do what Tim Cook has done in many respects.
Apple’s CEO Tim Cook is the 171st highest-paid CEO
MacRumors details that with a $2 trillion market cap, Apple tops the entire S&P 500 index. But the company’s CEO’s pay is modest in comparison to other S&P 500 CEOs.
An increasing number of CEO compensation packages are tied to stocks as boards look to tie executive pay to the fortunes of company shareholders. Although Apple’s one-year return for shareholders was 109 percent in 2020, Cook’s pay only increased by 28 percent.
Last year in October, Apple granted CEO Tim Cook new equity awards which is expected to reach up to 1 million shares by 2025. He got 333,987 units of restricted stock that will vest in thirds annually from 2023. With that, Mr.Cook’s worth has reached over a billion dollars.
As per the report, some CEOs earned handsomely while others relayed on stocks.
The highest-paid CEO was Paycom Software’s Chad Richison, who earned more than $200 million. Seven CEOs were given compensation valued at more than $50 million last year, compared with just two in 2019 and three in 2018. Twenty-four S&P 500 CEOs made less than five million dollars last year, including Tesla’s Elon Musk, who reported zero pay, and Twitter’s Jack Dorsey, who earned just $1.40.