Tim Cook’s 2021 Compensation Rose 500% As Apple Marched Towards $3 Trillion

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Apple has skilled a number of monumental milestones in current months.

First off, Apple’s inventory value ended 2021 up 33%. And understand that Apple began the 12 months with a market cap of $2.4 trillion, so growing a full 33% on high of an already large quantity just isn’t precisely a simple achievement. Apple’s market cap has elevated by round $600 billion in comparison with a 12 months in the past at the moment. That is like including the mixed values of Coca-Cola, Exxon and Walt Disney to its market cap in 12 months. For extra context, Disney has a market cap of $286 billion as of Friday’s shut. If Disney’s inventory elevated 33%, the corporate’s market cap would enhance by round $100 billion, to $380 billion. That may be thought of completely astronomical inventory efficiency. Apple added $100 billion in market cap to its worth each TWO MONTHS in 2021.

Talking of Apple’s market cap. Final week Apple accomplished another impressive milestone when it grew to become the primary publicly traded firm in historical past to realize a market cap above $3 trillion. It ended the week again down at $2.82 trillion however think about this: It took Apple three years to triple in worth from the first time it crossed $1 trillion back in August 2018. It solely took 502 days to go from $2 trillion to $3 trillion.

And eventually, in August 2021 Apple marked the ten 12 months anniversary of Tim Prepare dinner taking on as CEO from firm co-founder Steve Jobs. And what a decade it has been.

Apple’s peak market cap below Steve Jobs was $360 billion. So below Tim Cook’s regular hand, Apple has elevated practically 10x. Should you had purchased $1,000 price of Apple shares on the day Tim Prepare dinner grew to become CEO, a decade later you’ll be sitting on round $15,000.

Lengthy story quick, Apple below Tim Cook’s steering has been nothing however a rocket ship to mars. And because the pilot of this rocket ship, Tim has rightly earned an enormous fortune.

(Photograph by Stephanie Keith/Getty Photographs)

In response to firm filings, in 2020 Tim Cook’s whole compensation was…

$14.8 million

In 2021 Tim Cook’s whole compensation was boosted to…

$98.7 million

That is a well-earned 500% enhance in annual pay.

Tim earned $3 million in base wage in 2021. He additionally earned a restricted inventory grant valued at $82.3 million. The rest of his compensation consists of retirement advantages, safety prices and journey prices (he is required to fly on Apple’s personal jet all over the place, for private or enterprise causes and that is thought of a type of compensation).

When Tim first grew to become CEO of Apple again in 2011, he was given a big grant of choices that vested in 10 annual increments (he obtained the primary chunk up entrance, so technically solely 9 tranches vested over time). A piece of his grant was performance-based. These shares could be granted provided that Apple out-performed 2/3 of the S&P 500. He hit each single efficiency milestone over the last decade. He obtained his ninth grant, roughly 560,000 shares, in August 2020.

To incentivize him over the following few years, Apple’s Board gave Tim a brand new giant fairness grant at the start of 2021 that can preserve him with the corporate by means of 2025. Earlier than this grant, Tim outright owned 0.02% of Apple. With the most recent grant, Tim Cook’s net worth tops $1.5 billion utilizing the corporate’s present market cap.

If Apple grows on the identical tempo over the following three years because it has over the earlier three years (a really very very large problem), Tim might retire in 2025 with a net worth above $4 billion.

He would definitely have earned it.

The excellent news for all of us regular people is that Tim plans to donate 100% of his wealth to charity earlier than he dies! So we should always all be rooting for Apple over the following few years.

[Disclosure: I own some Apple shares in both a retirement and non-retirement stock account. I am not a stock expert. This is not financial advice.]


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