A filing with the US Securities and Exchange Commission shows that Apple CEO, Tim Cook, earned $100 million in 2021.
1,477 Times Higher Than Average
The filing showed that his pay, fuelled by stock awards, if compared to the new median pay for employees of $68,254, was 1,447 times that of the average employee at Apple.
Considerably Higher Than 2020
The filing appears to show that Mr Cook’s $98.7 million salary was so much higher than his $14.8 million in 2020 because he received $82.3 million in stock awards, $12 million for hitting Apple’s targets, and $1.4 million for air travel on top of his $3 million basic salary.
Home Working Has Boosted Demand
Apple was reported to have first become a trillion-dollar company as far back as August 2018, and in its first day of trading in 2022 became the first company to hit a $3 trillion stock market value (albeit briefly as stocks dipped at the end of the day). The company’s revenue received a considerable boost of more than 30 per cent to $365.82 billion in 2021 due to increased demand for its products thanks to the home working caused by the pandemic lockdowns.
First Since 2011
Mr Cook taking over for Steve Jobs in 2011 led to an initial 1,000 per cent stock surge, and Mr Cook has not, until last year, received restricted stock units since 2011.
Donate Wealth To Charity
Back in March 2015, Mr Cook announced that he planned to donate his $800m fortune to charity before he dies, with the money to go to many social causes, and to his nephew’s education.
Not The Richest
Tim Cook is certainly not the richest man compared if to Tesla founder Elon Musk whose fortune was boosted recently by a $ 32.6 billion rise in share price due to strong Tesla car sales in 2021 to $ 304.2 billion.
What Does This Mean For Your Business?
Evidence of the personal wealth and salary increases of big tech company bosses, particularly over the last 2 years, highlights the strength of the market position of their companies, the increased demand for tech/digital products and services with home working during the pandemic, and of course, obvious inequalities in society. Apple has clearly strengthened its market position during 2021 and Cook has been rewarded for his leadership through stock units, albeit for the first time since he took over. It’s difficult for many business owners to imagine the kind of remuneration figures that big tech bosses and rich-list people receive although, thankfully, it is not unusual for some to spend substantial amounts on worthy causes (Bill Gates), and it is heartening to hear that Tim Cook plans to donate so much to social causes, albeit after his death. Apple’s good profit news is a far cry from its 2020 fine for the ‘batterygate’ scandal and, with its new ‘Business Essentials’ service and ‘Self-Service Repair’ programme for iPhones beginning this year, plus the continued demand for its products, 2022 looks set to be another good year for Apple and its CEO.