Tag Archives: highest-paid

4 Of The 5 Highest-Paid Execs In The U.S. Work For Apple

Apple-highest-paid

Four out of the five highest-paid executives in the United States work for Apple, Bloomberg Businessweek reports, but not one of them is CEO Tim Cook.

According to fiscal 2012 compensation figures for top earners filed with the U.S. Securities and Exchange Commission (SEC), Apple’s Bob Mansfield, Bruce Sewell, Jeffrey Williams, and Peter Oppenheimer join Oracle CEO Larry Ellison to make up the top five corporate earners last year.

Mansfield was the highest-paid Apple employee, receiving $85.5 million during 2012. He actually decided to leave the company last June, but was reportedly handed an “exorbitant” payout that convinced him to sign a new two-year deal. Mansfield came second only to Oracle’s Ellison, who earned $96.2 million.

In third place was Sewell, Apple senior vice president and general counsel, who earned $69 million — slightly more than fourth-place Williams, Apple’s senior vice president of operations, who earned $68.7 million. Oppenheimer, Apple’s chief financial officer, was the fifth-highest earner with $68.6 million.

Businessweek reports that these hefty pay packets are designed to prevent executives from leaving for other roles in an increasingly competitive industry. Apple’s board confirmed this in its regulatory filing, which said stock grants should be “meaningful in size in order to retain the company’s executive team during the CEO transition.”

“It’s a retention strategy to keep the key executives who were present in the Steve Jobs era,” said Greg Sterling, an analyst at Opus Research. “They want to be sure the actual talents that they bring to the company are retained, and also from a perception standpoint to retain confidence in the leadership.”

Rather surprisingly, Apple CEO Tim Cook was ranked 1,016 on the highest-paid list, with a $4.17 million package during 2012. However, he was the highest-paid CEO in 2011 after receiving $378 million, almost all of which came in restricted stock awards that are set to vest over the next decade.

Source: Bloomberg Businessweek

    


How much Apple CEO Tim Cook really made last year


Apple’s Chief Executive Officer Tim Cook was the highest-paid CEO in the United States during 2011, according to a report from The New York Times (via Bloomberg). The report cited data from research firm Equilar who tracked executive compensation throughout the year.

To take home the top spot, Cook received about $378 million. That number includes his salary, perks, and bonuses of $1.8 million in addition to a one-time stock grant of $376.2 million that vests in 2016 and 2021. The report noted that stat works out to roughly a million dollars a day. However, many are taking issue with the number, because the majority of the money requires Cook to stay with the company for 10 years before receiving it…

Fortune’s Philip Elmer-DeWitt pointed out NYT’s claims of Cook making approximately $1 million a day in reality actually works out to $103,000 a day when taking the 10-year period into account. It is certainly a lot of money, but nowhere close to the stats shown in the graphic above that accompanied the NYT’s original story.

Following closely behind Cook is Oracle’s Larry Ellison with $77.6 million and former Apple executive Ron Johnson earning $53.3 million at his new role at J.C. Penney Co.

Cook has had an impressive year during his first as the officially appointed CEO. From when he took the job in August 2011, Apple’s stock has risen from approximately $375 to well over $600. Last month Apple’s market cap surpassed No. 2 Exxon with $514 billion, which is up from 321.07 billion on March 31, 2011. Earlier this year, Cook also netted $64 million from selling over 106,640 shares of restricted stock units that vested on March 24 after they were initially awarded in 2008.