Apple CEO Tim Cook took home $4.25 million for the 2013 fiscal year that ended September. The compensation package consists of Cook's salary and bonuses amounting to $1.4 million and $2.8 million, respectively. The filing also revealed that the package comes with 401(k) contributions of $15,301, vacation cash-out totaling $35,000, and life insurance premium of $2,420.
The figures revealed through the company's yearly shareholder proxy filed on December 27, indicate that Cook received steady pay since 2012 when he took home a slightly lower package of $4.2 million. In 2011, during his first year as CEO, he received a remuneration totaling $378 million inclusive of a million shares as part of his sign-on grant.
"The company exceeded the maximum performance goals for both net sales and operating income set by the Compensation Committee for 2013. Accordingly, each executive officer received the maximum payout of 200% of base salary under the performance-based bonus plan," Apple's filing stated.
While the goals of the company were met, the stocks of Apple dipped. As a result, Cook forfeited 7,123 shares with the board deciding 72,877 shares will vest out of the 80,000 restricted stock units. The forfeited stocks would have translated to around $3.99 million, based on Apple's closing price of $560.09 on Friday.
"The Company is in the process of designing future awards for executive officers, and it is committed to including performance criteria in a portion of the equity awards it grants to executive officers in the future. In the past, these awards have been entirely time-based (i.e., vesting for continued service). In outreach discussions this year with many of the Company's largest shareholders, shareholders supported this commitment to including performance criteria," the proxy filing read.
"Mr. Cook led this initiative by example with the full support of the Board. He asked the Compensation Committee to apply performance criteria to his 2011 RSU award as well as any potential future awards. After careful deliberation, the Compensation Committee approved a modification to Mr. Cook's 2011 RSU award effective June 21, 2013," it added.
Apple is still considered the most valued firm in the world but its market value has gone down by as much as 25 percent since last year. Other technology companies such as Samsung has been making life difficult for Apple in the tablet and smartphone space. Technology analysts and market observers are also wondering whether the brand can still produce innovative devices without the creative genius and visionary Steve Jobs.
The filing of Apple also revealed that the board of directors are against the the $50 billion stock buyback plan, which will be introduced at the annual shareholders meeting next year, by Carl Icahn who holds 0.5 percent stake in Apple.
