Apple Inc. Chief Executive Officer Tim Cook received compensation for 2012 valued at $4.17 million after receiving one of the biggest payout packages on record last year.
The total includes $1.36 million salary and $2.8 million in incentive plan compensation for the fiscal year that ended in September, Cupertino, California-based Apple said today in a regulatory filing.
Cook, who succeeded Apple co-founder Steve Jobs as CEO last year, has in the past several months led an overhaul of Apple’s entire product line, including the introduction of a new iPhone, iPads and Mac computers. He received 2011 compensation of $378 million, one of the biggest pay packages on record, boosted by $376.2 million in stock awards that he’ll get over a decade.
“It pales by comparison because last year’s million-share grant was highly extraordinary,” said Brian Foley, a compensation expert with Brian Foley & Co. “There are other executives who remain unnamed at other companies who would be tempted to go for every last candy in the dish.”
Apple also awarded pay increases to several senior executives. Chief Financial Officer Peter Oppenheimer received 2012 compensation valued at $68.6 million, up from $1.42 million a year earlier. His 2012 stock awards are valued at $66.2 million.
Bob Mansfield, the senior vice president of technologies, received $85.5 million, including $83.1 million in stock. Cook asked Mansfield, who was formerly in charge of hardware engineering, to come out of retirement amid a management shake-up earlier in the year, people familiar with matter said at the time. Mansfield’s stock options are vesting more quickly than other executives, said Foley.
“He was threatening to retire and from a bench strength, leadership view point they decided they couldn’t afford to have him leave,” Foley said.
Jeff Williams, the senior vice president of operations who manages Apple’s supply chain, received $68.7 million. Bruce Sewell, the company’s general counsel who has managed Apple’s patent litigation, received $69 million, compared with $1.41 million in 2011, according to the regulatory filing.
Cook’s base salary in 2011 was $900,000. His total compensation in 2011 put him ahead of the highest-paid CEOs at the time, according to Equilar Inc., which tracks executive compensation. Oracle Corp. CEO Larry Ellison received 2011 compensation valued at $77.6 million. At Microsoft Corp., Steve Ballmer’s pay package was worth $1.38 million.
Amazon.com Inc. paid CEO Jeffrey Bezos a salary of just $81,840 in 2011 and no stock awards, making him the lowest paid among large technology companies.
Cook faced a setback recently when users and critics faulted Apple’s map application, forcing the company to let Google Inc.’s map app back onto the iPad and iPhone devices.
The company’s stock has dropped 27 percent from a September 19 record high, building up pressure on Cook to introduce a new hit product and fend off Google and Samsung Electronics Co.
Apple rose less than 1 percent to $515.06 at the close in New York. Even with the decline since September, the stock is up 27 percent for this year.
At least five analysts have cut their price targets for Apple since Dec. 16, with some saying Apple’s purchases from suppliers indicate iPhone and iPad sales may not meet projections.
The reports from Citigroup Inc., Pacific Crest Securities, Mizuho Securities USA, BMO Capital Markets and Canaccord Genuity mark a reversal from earlier this year, when analysts were racing to issue upbeat predictions, with at least two saying Apple would top $1,000.