Leading shareholder advisory group Institutional Shareholder Services (ISS) has urged clients with AAPL stock to vote against a pay and bonuses package for CEO Tim Cook worth over US$98 million. In a letter to clients seen by the Financial Times, it said there “is a significant concern” with the stock award offered to the Apple boss.
Vote Against Tim Cook Pay, Urges Shareholder Advisory Group
The AAPL award was granted to Mr. Cook last year. It was valued at US$82 million at the time. In addition, the CEO was also given a US $12 million cash bonus alongside his US$3 million salary.
Apple had not publicly commented on the recommendation from ISS at the time of this writing. Any shareholder vote would be advisory and does not have to be implemented by the board.
Mr. Cooks 2021 pay was revealed in January. As well as the stock and cash outlined above, it included items like security and travel expenses and a 401(k) plan. In the SEC filing outlining the package, the Apple board praised the CEO and noted 35% year-over-year sales growth. It said:
In 2021 we marked the 10th anniversary of Tim Cook’s leadership as CEO. It’s been a remarkable decade for Apple and in 2021 Mr. Cook was granted an equity award for the first time since he was promoted to CEO in August 201
I think we should give Tim Cook a raise. just my 2 cents…
So what is the alleged “significant concern”? (The article isn’t available without subscribing to the FT). He’s turned Apple into a profit and cash powerhouse. Why shouldn’t he be rewarded handsomely for it?
You can’t put a price on Tim Cook’s leadership. Also, the day he announces his retirement Apple’s stock price will drop. Apple’s board and the major shareholders will do everything they can to keep him on.