Apple CEO Tim Cook Receives $12 Million as His Yearly Bonus

Apple Inc. Chief Executive Officer Tim Cook has received the biggest ever annual bonus a huge 22 percent pay raise in the year 2018, bringing his total compensation for the year to almost $15.7 million ($21.3 million). The information is disclosed by the iPhone maker, which has achieved record revenue last year with profit and market value temporarily eclipsed to $1 trillion.

Cupertino, the California based company in a filing submitted to the Securities and Exchange Commission recently declared, Cook received a $12 million bonus for the year, which ended financially in September 2018. He also received a $3 million as salary and shares worth $121 million for his 10-year service to the company, along with other perks, which amounts to about $682,000.

Apple’s compensation committee has cited the company’s strong sales performance over the year for the bonus. According to a statement released by the company, “For 2018... we achieved net sales of US$265.6 billion and operating income of US$70.9 billion, each representing a year-over-year increase of 16 percent, and exceeding the 2018 maximum annual cash incentive program goals for both of those performance measures”.

The bonus is linked to revenue and operating income targets, both of which has risen to 16% compared to the last year. Four other Apple executives also received $4 million as a bonus, bringing their total pay to about $26.5 million each, including the salary and the stock awards.

The bulk of amount as Tim Cook’s pay reminds one of such company compensation eight years ago, when for the first time he received the biggest stock award in the year 2011, while succeeding Steve Jobs as the CEO of Apple Inc. Last year also the 58-year-old CEO of Apple got a major pay raise. In 2017 he received $12.8 million while in 2016 he received US$8.7 million as a bonus.

The number of shares he receives partially depends on the performance of Apple’s stock compared with other 500 companies. In August, Tim Cook collected about 560,000 shares, as Apple outperformed more than two-thirds of the firms in more than three years.  

Though, last week Apple disclosed lower than expected demand for iPhones in China and other parts of the world, cutting its revenue forecast for the first time in two decades. Apple is now fourth among the top IT giants, behind Amazon, Microsoft and Google.