Tim Cook received a 74 per cent increase in his annual bonus for fiscal 2017, thanks to the earnings rebound after a rare decline in fiscal 2016.
He received 102 million dollar payout and also that he must fly by private aircraft for both official and private purposes for “security and safety reasons”, as revealed by regulatory filing with SEC.
Cook’s incentive pay totalled $9.33 million.The Apple CEO was paid $3.06 million in salary. He also received an equity award of $89.2 million. To add on to this, Cook received a massive increase in his annual bonus, thanks to earnings rebound for the company and a profitable year 2017.
According to a new shareholder proxy statement from Apple, the board of directors has approved that Cook must fly on private aircraft whenever he travels, be it for business or personal purpose.
“This policy was implemented in 2017 in the interests of security and efficiency based on our global profile and the highly visible nature of Cook’s role as CEO,” Apple said in the shareholder proxy statement filed late on Wednesday.
“Any time Cook uses an Apple private jet for personal travel, the costs are considered extra compensation, on which he will have to pay taxes,”. Apple has also hired “personal security services” for Cook.
His top five lieutenants, Luca Maestri, Angela Ahrendts, Johny Srouji, Dan Riccio, and Bruce Sewell received bonuses of $3.11 million (roughly Rs. 19 crores), bringing their total compensation to about $24.2 million (roughly Rs. 155 crores) each, including salaries and stock awards.
According to the latest report from Counterpoint, Apple continues to hold almost 60% share of mobile handset industry profits globally, though this being down from 86% in the same quarter last year.
Apple’s profit share declined by 30 percent (YoY) mainly due to increased mix of previous generation iPhones.
“In Q4 2017, we estimate that the total profits of Apple will improve driven by its iPhone X sales. Apple exited the quarter with some iPhone 8 inventory due to softer than expected demand compared to the iPhone 7 series,” Counterpoint said.