Tim Cook: Corporations should have values
The head of the world’s most valuable company has stopped flying commercial.
Apple (AAPL) now requires CEO Tim Cook to fly a private plane for “all business and personal travel,” according to a regulatory filing on Wednesday.
“This policy was implemented in 2017 in the interests of security and efficiency based on our global profile and the highly visible nature of Mr. Cook’s role as CEO,” the company wrote in the filing with the Securities and Exchange Commission.
That puts Cook in good company. Facebook (FB) CEO Mark Zuckerberg and Disney (DIS) CEO Bob Iger both rely on private planes for all their personal travel, according to the most recent company filings for each.
Apple’s total tab for Cook’s personal trips on the private plane was $93,109 in the 2017 fiscal year, which ended in September. The personal travel costs are added to Cook’s overall taxable income for the year.
Cook’s total compensation was $12.8 million in 2017, up nearly 50% from the previous year, according to the filing. The pay increase came from a larger bonus because Apple beat its goals for annual sales and operating profit.
It’s a notable reversal from 2016 when Cook’s pay was cut 15% for missing goals. In 2016, Apple suffered shrinking iPhone sales and its first annual sales decline in 15 years.
Since then, demand for Apple’s newer iPhone models has been strong, and the company has gotten continued traction from its services division, which includes Apple Pay, AppleCare and digital content.
Even with the larger bonus, however, Cook’s compensation was the lowest of any member of his executive team disclosed in the filing. Angela Ahrendts, the former CEO of Burberry and now head of Apple’s retail operations, topped the list with $24.2 million in total compensation.
However, Cook is also sitting on a pile of Apple stock. In 2017, Cook received a previously disclosed $89 million stock payout as part of a welcome package dating back to 2011. Including that amount, Cook’s total pay for the year topped $100 million.
CNNMoney (New York) First published December 28, 2017: 11:29 AM ET