Apple Inc. said it exceeded its internal financial targets in the past fiscal year, resulting in the company paying out 179% of the targeted bonuses for named officers.
For Chief Executive Tim Cook, that meant his cash bonus rose 40% last year to $10.7 million, Apple said Tuesday in its annual proxy filing with the Securities and Exchange Commission. His bonus had taken a 36% hit in 2019 when his pay package fell as revenue and profit declined tied to weaker iPhone sales.
In the past fiscal year, despite a global pandemic that disrupted economies around the world, Apple’s profit rose 3.9% with laptops and iPads sales benefiting from workers and students stuck at home as part of efforts to slow the spread of Covid-19. Apple’s share price rose more than 80% in 2020, placing its market value at more than $2 trillion.
In addition to his compensation, Mr. Cook had a total of $281.9 million in restricted stock that vested during the year. Those shares were a core part of Mr. Cook’s long-term incentive package that was awarded in 2011 when he became CEO. The decadelong plan’s final tranche vests later this year.
In September, Apple’s board awarded a new long-term equity plan to Mr. Cook with shares that vest from 2023 through 2025, giving him incentive to stay on as CEO through that period. Mr. Cook, 60 years old, joined Apple in 1998.
Apple on Tuesday also said former newspaper editor and publisher Monica Lozano had been elected to the company’s board, adding a prominent Hispanic business leader to the existing group of eight directors. Ms. Lozano is currently CEO of College Futures Foundation, and previously ran the Spanish-language newspaper La OpiniÃ³n and later headed its parent company, ImpreMedia.
According to Apple’s proxy filing, Mr. Cook’s 2020 pay, excluding vested shares, totaled $14.8 million, including the cash bonus and a $3 million salary that didn’t change from the prior year. The package included $470,246 in security costs and $432,564 for air travel. The company requires Mr. Cook to use private planes for all business and personal travel.
Write to Tim Higgins at [email protected]