Apple Inc. Chief Executive Officer Tim Cook received compensation valued at $4.25 million this year, a 1.9 percent increase over 2012, even as the iPhone maker’s stock gains lagged the Standard & Poor’s 500 Index.
The package includes a salary of $1.4 million and $2.8 million in non-equity incentive plan compensation for the fiscal year that ended in September, the Cupertino, California-based company said in a filing yesterday with the U.S. Securities and Exchange Commission.
Cook, 53, is contending with thinning profit margins and slowing sales growth as rival gadget makers such as Samsung Electronics Co. and Amazon.com Inc. take on Apple with lower-priced devices. After outperforming the S&P 500 for four straight years, Apple shares have gained 5.3 percent this year, compared with the index’s 29 percent advance.
Apple tapped Cook, a 15-year company veteran, to run the business prior to the death of his predecessor, Steve Jobs, in 2011. Cook received compensation that year 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.
In 2013, Cook forfeited more than 7,000 restricted stock units because of the company’s stock performance to August from August 2012, according to the filing. The modification was part of his 2011 agreement.
Cook’s top deputies -- Peter Oppenheimer, Eddy Cue and Jeff Williams -- all received much smaller pay packages in 2013 than in 2012, because last year they were granted restricted stock units, which are given to officers other than the CEO every two years.
Oppenheimer, Apple’s chief financial officer, was awarded 2013 compensation valued at $2.63 million, including a salary of $866,061 and incentive compensation of $1.75 million. A year ago, he received $68.6 million, with stock awards valued at $66.2 million.
Cue, the senior vice president in charge of iTunes, made $2.65 million in 2013, down from $50.4 million a year earlier, and Williams, the senior vice president who manages Apple’s supply chain, received $2.63 million, down from $68.7 million.
In October, Apple forecast gross margins for the current quarter that missed analysts’ projections and predicted that the percentage sales increase in the period will be in the single digits. That would be the smallest increase for the holiday quarter since 2008.
Apple said in the filing that the company exceeded the maximum performance goals for sales and operating income set by the compensation committee, resulting in each officer receiving 200 percent of base salary under the bonus plan.
The company also recommended in the filing that shareholders vote against a proposal being submitted on behalf of investor Carl Icahn that it commit to spending at least $50 billion on share repurchases in the fiscal year that ends Sept. 27, 2014. Icahn, who owns about 0.5 percent of Apple, has been urging the company since August to increase the size of its repurchase plan.
The shares of Apple declined less than 1 percent to $560.09 at yesterday’s close in New York.