Tim Cook is laughing all the way to the bank with a massive 2021 compensation. Also, Apple made $1 billion in sales each day of the just-concluded year.
When you run the biggest company globally, there is no doubt it will reflect in your salary. Tim Cook, the CEO of Apple, will receive $98.7 million as payment for his services.
2021 was a massive year for the iPhone maker. But which year in recent memory has not been tremendous for the company? At any rate, the company became the first to cross the $3 billion market capitalization mark to remain the largest company by valuation.
Cook’s pay revelation came via a proxy statement filed by Apple. However, not all the compensation is in cash. The CEO got $3 million as base pay, $12 million as incentives, and $82 million as stock awards. The rest comes in the form of expenses like security and travels using private jets.
It is not surprising that Cook got that much money because Apple’s operating income rose 64 percent year on year to $108.9 billion on top of $365.8 billion in revenue. This means every day in 2021, Apple earned about $1 billion in sales globally. The Americas remained the biggest performing region for Apple, accounting for more than $150 billion. Europe is next at $90 billion.
The iPhone was still Apple’s biggest business, pulling in $192 billion in revenue. The Mac was a distant second, at $35.2 billion.
Compared to 2020, Cook got six times more than the $14 million he received then. But that is not accounting for the massive $750 million in shares that he got as part of his ‘sign-on’ bonus. It was a ten-year deal that would compensate him at stages. The compensation plan was changed at Cook’s request but with significant risk to his awards if he didn’t meet up with expectations.
The CEO was not the only Apple employee whose pay for 2021 was based on performance because other executive officers got similarly calculated wages. They were handsomely rewarded for their efforts as well because all the named executives got a base pay of $1 million, in addition to almost $22 million in stock awards.
As part of its push for transparency, Apple also published the ratio of Cook’s compensation to the median Apple employee, who received $68,254. This means the CEO earned 1,447 times more than the fictional employee. To calculate this ratio, Apple considered “base salary, bonuses, commissions, and grant date fair value of equity awards granted to employees in 2021.”
Cook’s 2021 was filled with both financial success and drama. The year, the 10th with Cook as the overall boss, saw employees complaining more openly about the work culture at Apple. Cook also had to deal with issues surrounding reopening offices and closing stores due to the pandemic.
2022 promises to be another great year for Apple, with many updates coming to its products. For example, the iPhone is rumored to be losing the notch next year in favor of a smaller hole-punch, while the AirPods Pro can also lose its long stem and get a motion sensor that will allow it to function as a fitness tracker. Also, Apple is expected to launch new Mac computers with updated chips.
This year, another Apple product that could make a bang is the iGlass, an AR/VR eye-wear that competes with offerings like Microsoft’s Hololens and Meta’s Quest. The name has not been confirmed yet, but it is rumored to feature an 8k display for each eye.