Apple Chief Tim Cook's Pay Fell in 2019
January 03 2020 - 8:07PM
Dow Jones News
By Maria Armental and Tripp Mickle
Apple Inc. cleared its internal financial targets in 2019, but
CEO Tim Cook's executive compensation fell by roughly one-quarter
because of revenue and profit declines tied to weaker iPhone
sales.
The company exceeded expectations in fiscal 2018, when the
tenth-anniversary iPhone delivered a record $265.6 billion in
revenue and earned Mr. Cook a $12 million cash bonus.
Apple's board set less ambitious goals for the company in fiscal
2019. Rather than raise expectations for total sales as it has done
in the past, Apple lowered its sales target 3% from fiscal 2018 to
$256.6 billion. The profit target declined 15% from the prior year
to $60.1 billion.
The company's $260.2 billion in sales and $63.9 billion profit
cleared those benchmarks.
The more modest goals reflect the cyclical nature of Apple's
business. The company depends on the iPhone for more than half of
total sales. It now overhauls the device's design every three years
-- a strategy that causes sales to spike when those new devices are
introduced, followed by declines in subsequent years.
Mr. Cook's executive compensation, excluding vested shares,
totaled nearly $11.6 million for fiscal 2019. His pay included a
$7.7 million cash bonus, some $450,000 in security costs and
$315,000 in air travel expenses, reflecting the company's policy
that Mr. Cook use private planes for all business and personal
travel.
Also factoring in the nearly $113.5 million from stock that
vested during the year, Mr. Cook's overall pay would add up to
roughly $125 million.
As in previous years, Mr. Cook's executive compensation was
lower than that of other Apple executives, including Deirdre
O'Brien, a longtime Apple executive who last year took on added
responsibilities. Ms. O'Brien's compensation totaled $19.2 million
for the year ended in September.
Mr. Cook, 59 years old, joined Apple in 1998 and has served as
CEO since 2011.
--Josh Beckerman contributed to this article.
Write to Maria Armental at maria.armental@wsj.com and Tripp
Mickle at Tripp.Mickle@wsj.com
(END) Dow Jones Newswires
January 03, 2020 19:52 ET (00:52 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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