Tim Cook’s cash bonus increased by 40 percent in 2020, Apple’s annual proxy filing with the Securities and Exchange Commission revealed. The bonus was worth a total of $10.7 million and was part of a wider pay package totaling nearly $15 million.
Tim Cook ‘Brings Unparalleled Innovation and Focus,’ Says Board
Overall, Apple paid out 179 percent of its target-based bonuses for name officers as it exceeded its financial targets. The filing said:
The Board believes Mr. Cook brings unparalleled innovation and focus to the CEO role, demonstrates what it means to lead with values and integrity, and consistently delivers incredible results for our shareholders.
As well as the cash bonus, Mr. Cook saw $281.9 million worth of stock vest during 2020 and was awarded a new plan including shares that vest from 2023 through 2025. In total then, Mr. Cook was paid $14,769,259. That is made up of the bonus outlined above, his $3 million salary, and other elements of a package that includes $470,246 in security costs and $432,564 for air travel. The document notes that the board requires him to have both personal security and travel by private plane. Mr. Cook regularly gives large amounts of his wealth away to charity.
Values-Based Leadership – And Compensation
Going forward, there will also be “an environmental, social, and governance modifier based on Apple Values and other key community initiatives will be incorporated into our annual cash incentive program,” the document revealed. “This change is intended to further motivate Apple’s executive team to meet exceptionally high standards of values-driven leadership in addition to delivering strong financial results,” it explained. This new modifier will be used by Apple’s Compensation Committee to decide whether to increase or decrease the bonus payouts by up to 10 percent, based on the criteria it sets.