Tim Cook's contract with Apple will expire at the end of 2021. But with what he has shown since replacing Steve Jobs when he died in 2011, there is no reason for Apple not to renew the contract with Tim Cook.
Bloomberg recently released a list of the world's highest-paid CEOs in 2019. Accordingly, the CEO of the famous technology group Apple is said to have earned more than $133 million last year. This includes $3 million in salary, $7.7 million in bonuses, $122.2 million in stock bonuses and over $884 million in title privileges. With a "terrible" income, Tim Cook ranked second on the list, after only $595.3 million of Tesla CEO - Elon Musk.
Another CEO who runs the company in the direction of smartphones, tablets, smart watches and similar products named in the rankings is Sundar Pichai - CEO of Alphabet (Google's parent company). He came in 8th place after bringing the company $86.2 million in revenue in 2019. Sundar Pichai's annual salary is $650,000, but his income is greatly increased thanks to 82.2 million USD stock bonus, and $3.4 million for title privileges.
At Microsoft, CEO Satya Nadella last year received only $77.3 million in total income and ranked 9th. The salary of Microsoft CEO is $ 2.3 million, he received an additional $ 10.8 million in bonuses, $64 million from stakes and $ 111,400 for titles.
Sarah Anderson, director of the Global Economic Project at the Institute for Policy Studies said: "While paying too much for workers can be dangerous held on Walls because of systemic risk, the sky-high salaries of most major corporations in the US have the potential to increase a number of social and environmental threats. I think this has been ignored."
A number of stock bonuses were given to CEOs years ago and are now beginning to circulate. Part of the $122.2 million share bonus Tim received last year was linked to the 1 million shares he received in 2011. It was part of a proposal package for the CEO after his replacement, so Steve Jobs ran the company a second, final time at Apple. The first time was in 2009, when Jobs stopped working. In August 2011, the former CEO officially resigned.
However, the company's board of directors needed a stabilization after Jobs's departure and came to a decision to give Cook $383 million worth of shares at the time. Less than two months later, the founder of Apple, Steve Jobs died.
Other titles on Apple's board of directors will also receive large sums of money in 2019, including Senior Vice President and Chief Financial Officer Luca Maestri ($25.2 million), Senior Vice President and Advisors. General Kate Adams (25.2 million USD), Vice President of Retail Division Deirdre O'Brien (19.2 million USD), CEO Jeff Williams (25.2 million) and former Vice President of Retail Division Angela Ahrendts (22.3 million). All of these earnings include stock rewards. Angela Ahrendts has left Apple.
Four of the top 10 highest-paid CEOs of the technology industry last year, in which Intel CEO Robert Swan with a total revenue of $99 million, ranked seventh in the list.
Apple's board of directors has reason enough for the huge earnings payments of key positions, because most of the bonus is based on stock value. With Apple's stock closing at the all-time highs last week, the company's leaders deserve to be commended for their efforts to make investors profitable.
Cook's contract with Apple will expire at the end of 2021. As the general manager, Cook was responsible for monitoring iPhone changes such as increasing the screen size, putting into use OLED panels, FaceID and rabbit ears ... He also ran the company when it launched popular products like the Apple Watch and AirPods.
There is no reason not to expect Tim Cook will continue to accompany Apple for another 10 years. Meanwhile, we will continue to see him introduce the future Apple Glass product, a breakthrough of AR technology which will be launched in 2022 or 2023.
In the ordinary business context, we can think of a new contract with more incentives for Tim Cook, including more stock bonuses. But at the moment, when the salaries of senior executives are more scrutinized than ever, let's wait and see which new deal will be agreed with the next CEO.
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