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Apple boss Tim Cook takes massive pay cut

January 03, 2013 By: Dr Search Principal Consultant at the Search Clinic Category: Apple, Dr Search, mobile phones, Search Clinic, smart phones, Tablets, Technology Companies

Tim Cook will take home a salary of just 1% of the £235 million ($378 million) that he received to be Apple’s boss last year.Apple boss Tim Cook takes massive pay cutIn a regulatory filing, the iPhone-maker’s head said he would get a salary of £875,000 with a bonus of £1,750,000 for 2012.

Most of his money from 2011 came from a grant of shares awarded for becoming the chief executive and Apple said he would not get any new shares.

“Mr Cook’s target cash compensation remains significantly below the median for CEOs of peer companies,” it said.

Last year, following the death of co-founder Steve Jobs, Mr Cook received a bonus in the form of stock of more than $370 million, making him reportedly the best paid boss in the USA.

His base salary was $900,000. His predecessor, Steve Jobs, famously had an annual salary of $1.

Mr Cook’s salary was raised to $1.4 million and he received a bonus of 200% of his salary for exceeding Apple’s own targets in a year when its profit grew 61% to $41.7 billion and Apple became for a time the most valuable company in the world.

“Mr Cook did not receive an RSU [restricted stock unit] award in 2012 in light of the RSU award he received in connection with his promotion to CEO in August 2011,” Apple said.

It added: “Following a recommendation by Mr Cook to the Compensation Committee, the company adopted stock ownership guidelines for the CEO and the non-employee directors. Under the guidelines, Mr Cook is expected to own shares of company common stock that have a value equal to ten times his base salary.”

His colleagues received hefty pay packages after a successful year. Bob Mansfield, senior vice president of technologies, will get almost $86 million and chief financial officer Peter Oppenheimer will receive $68.6 million.

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