(Corrects level and date of Apple's record-high stock close, to
$702.10 on Sept. 19, not $700.10 in October, paragraph 14)
* Cook's 2011 pay package was historically large
* That 2011 package vests over ten years
* $1.4 mln base salary is a 50 pct increase over 2011
NEW YORK, Dec 27 Apple Inc CEO Tim
Cook's 2012 compensation package of just over $4 million is a
huge cut on paper for the top executive of the most valuable
U.S. corporation, after a 2011 package fattened by more than
$376 million in long-term stock awards.
Cook received the largest single pay package awarded to a
company CEO in about a decade when he replaced Apple's legendary
co-founder, Steve Jobs, shortly before Jobs' death in October
The maker of the iPhone and iPad made the 2012 compensation
disclosures in a regulatory filing on Thursday. Cook, who is in
his early 50s, joined Apple in 1998 and became CEO in August
Virtually all of Cook's $376 million bonus in 2011 was in
stock awards that will vest in two chunks - one in 2016 and the
other in 2021. This structure was intended to keep Jobs'
longtime lieutenant at the helm for many years.
In terms of base salary, Cook actually received a 50 percent
increase to $1.4 million for 2012, and the same 200 percent
bonus that other top Apple executives like CFO Peter Oppenheimer
earned, Apple said in a regulatory filing on Thursday.
The 2012 compensation package for Cook also pales in
comparison with his 2010 pay, which was 14 times higher, when he
served as chief operating officer.
But Tim Ghriskey, chief investment officer of Solaris Group
- which counts Apple stock as the biggest holding among the
approximately $2 billion it manages - said Cook's package was
"normal CEO compensation."
For example, Yahoo Inc's CEO, Marissa Mayer, a
former Google Inc high-flyer hired this year to try to
turn around the struggling Internet icon, won a pay package
worth more than $70 million. Despite her lack of
a CEO track record, her basic pay is comparable to Cook's, with
about $1 million in annual salary and up to $2 million in an
Oracle Corp's Larry Ellison, one of the most highly
paid chief executives in the United States - and also the
world's sixth-richest man, according to Forbes - received total
compensation for the year ended May 31, 2012, of $96.2 million -
almost all of it in stock options.
That compared with $77.6 million for Ellison in the prior
Cook's longtime boss, Jobs, famously received $1 a year in
salary in the three years before he stepped down, though in 2000
he too received a stock option that analysts say was valued at
almost $600 million at the time.
Cook will not receive any stock awards for 2012, Apple said
in Thursday's filing.
The 2012 package includes a salary of $1.4 million and a
nonequity bonus of $2.8 million. Cook's base salary actually
increased in 2012 from the $900,000 he earned in 2011.
While Apple's shares are roughly 35 percent higher than when
Cook became CEO, they have fallen more than 27 percent since
they hit a record closing price of $702.10 on Sept. 19. The
stock has declined amid investor worries about intensifying
competition in the mobile phone market and growth prospects in
important markets including China.
Apple shares were down 1.3 percent at $506.35 on the Nasdaq
on Thursday afternoon.
(Reporting by Sinead Carew and Liana Baker in New York, Jim
Finkle and Tim McLaughlin in Boston and Edwin Chan in San
Francisco,; editing by Kenneth Barry and Matthew Lewis)