The WallStreet Journal recently declared Tim Cook the “highest paid” CEO. But Cook’s salary is only $1 per year. How can he be the highest paid CEO?
Salary vs. Stocks
Though his salary is only $1 year, is it fair to say that he is the “highest paid?”
Yes and no.
Yes — he received 1 million stocks last year, which were valued at about $376 million at the time.
No — the stocks are restricted from being sold until later. Half of the stocks would become unrestricted in August 2015, and the other half in August 2021.
So Tim Cook wasn’t paid cash, but he received an insane amount of Apple stock, which he will have full access to by the end of 2021.
Selfish motive for a dividend?
Tim Cook’s stocks, though locked until 2015 and 2021, were eligible for shareholder dividends. Dividends for Tim Cook’s shares amount to $75 million.
This may make you wonder: is that why Tim Cook decided it was time to pay out a dividend to Apple shareholders?
Though he would have received $75 million from the dividend, Tim Cook turned it down.
Why? When you’re CEO of Apple, you don’t worry about your income. You worry about Apple’s income.
Tim Cook may not be the same as Steve Jobs, but he’s not resting on his laurels.
[Image via Reuters]