What is Tim Cook's Salary and Net Worth?
Tim Cook is a well-known American businessman who is best known as the CEO of Apple Inc. He began working for the company in 1998 and was promoted to CEO in 2011. Tim Cook's net worth is $1.5 billion as of this writing.
Under former CEO and creator Steve Jobs, Apple's market capitalization peaked at $350 billion. Many people doubted Tim's ability to outperform his brilliant predecessor when he was named CEO in 2011. In the present day, Apple's market capitalization exceeds $2.4 trillion.
If you had invested $1,000 in Apple shares on the day Tim Cook became CEO, you would have $13,000 a decade later.
Tim has declared that he intends to give away the majority of his fortune before he passes away, and he has already given tens of millions to various charities.
Tim's pay and benefits were $500,000 per year before he was chosen CEO when he was Apple's Senior Vice President of Worldwide Operations. Tim Cook's compensation was increased to $900,000 per year when he first became Apple's CEO in 2011. Tim now earns a $3.4 million base pay plus an annual bonus of $8–12 million.
Tim is given big chunks of Apple options that vest over time in addition to his salary and bonus. In a given year, his vested shares are recognized as income. Tim, for example, earned $113.5 million invested shares in 2019, on top of his salary and bonuses, bringing his total compensation for the year to about $125 million. Tim received $963.5 million in total remuneration from Apple between 2011 and 2020, when he was designated CEO. Tim receives around $500,000 in personal security expenses paid for by Apple each year, in addition to his regular income. For every personal and business travel, he is also compelled to fly privately. The annual cost of these flights is roughly $315,000.
Tim Cook's Apple Stock Ownership: How Many Shares Does He Own?
Tim was given a huge grant of options on the day he became CEO, which vested in 10-year increments (he received the first chunk upfront, so technically only 9 tranches vested over time). A portion of his award was depending on his performance. Only if Apple outperformed 2/3 of the S& P 500 would those shares be issued. He has achieved every single performance goal. In August 2020, he received his ninth grant, totaling around 560,000 shares. At their August 2020 price per share, over half of those shares are placed aside to settle a projected tax burden. Tim received 280,000 shares for $126 million at $450 per share (before the Apple stock split).
Tim already holds 847,969 fully vested Apple shares, in addition to the 560,000 shares given in August 2020. This piece was worth roughly $280 million in February 2020, when Apple shares were trading at $320. That investment was worth $380 million in August 2020, when Apple's stock touched $450 per share.
Tim is the second-largest individual shareholder in the corporation. He owns about 0.02 percent of the business. Board Chairman Arthur Levinson, who owns 1.1 million shares, is the company's largest individual shareholder. Levinson has been a member of the Board of Directors since 2000. Craig Federighi, Senior VP of Software Engineering, is the third-largest individual shareholder, with 412,000 shares as of this writing.
Time received his tenth and final installment of the original remuneration plan in August 2021.
Tim Cook officially became a billionaire in August 2020, when he received his ninth (and largest) performance stock grant of 560,000 shares.
Timothy Donald Cook was born in Mobile, Alabama on November 1, 1960. His father (Donald) worked in a shipyard, and his mother (Geraldine) was a pharmacist. He grew up in the nearby town of Robertsdale. Cook graduated from Robertsdale High School and earned an Industrial Engineering degree from Auburn University in 1982. Cook received his Master of Business Administration from Duke University's Fuqua School of Business in 1988. He was named a Fuqua scholar after graduating in the top ten percent of his class.
Tim Cook began his career with IBM right out of college, rising through the ranks to become the company's North American Fulfillment Director, overseeing manufacturing and distribution for IBM's Personal Computer Company in both North America and Latin America. Cook joined Intelligent Electronics as a chief operating officer (Reseller Division) after a 12-year career at IBM. He then worked for Compaq for six months as Vice President of Corporate Materials, where he was in charge of purchasing and inventory management.
In 1998, Cook was promoted to Senior Vice President of Worldwide Operations at Apple, where he was responsible for overseeing all sales and operations, including sales activities, service, and support. Tim joined Apple at a difficult time for the company, before the iMac, iPod, iPhone, or iPad were released. Profits were dropping and there was no profit increase. Many of Tim's pals tried to persuade him not to join the failing company.
Cook dismantled Apple factories and replaced them with contract manufacturers in an attempt to get the company back on track, and he engaged in long-term transactions like an advance investment in flash memory. Cook's activities during this time resulted in massive profits, a significant change from the previous fiscal year's $1 billion net loss, and he is credited with keeping Apple's spending under control. He was also in charge of the company's Macintosh division and developed strategies for reseller/supplier relationships. In January 2007, he was elevated to director of operations, and in 2009, he was named CEO. Steve Jobs, Apple's founder, and CEO was on a medical leave of absence at the time. Jobs sought another leave of absence in January 2011, and Tim was in charge of day-to-day operations at Apple during this period.
Jobs eventually stepped down as CEO, and Cook was named Apple's new CEO in August 2011. After a fight with cancer, Steve Jobs died barely two months later, in October 2011. They had rescued the company from a downward spiral by forming a partnership and taking it from less than $6 billion in revenue in 1998 to more than $100 billion in 1998. Cook was named to Time Magazine's list of the 100 Most Influential People in the World in April 2012.
In 2012, Apple's board of directors awarded him one million shares. Cook has stated that he intends to give away his whole stock wealth to charity. Apple announced the $3 billion acquisition of Beats Music and Beats Electronics in May 2014, its largest acquisition to date. In the summer of 2015, Apple revealed the iPhone 6. The Apple Watch was announced a year later.
Following the event between the National Security Agent and Edward Snowden, Cook joined a secret summit organized by President Barack Obama in 2013 on surveillance and the internet. Following the terrorist assault in San Bernardino, California in December 2015, the FBI asked Apple for help unlocking an iPhone used by one of the perpetrators. Later, the Department of Justice ordered Apple to develop modified iOS firmware that would allow investigators to unlock any iPhone to obtain the purpose of obtaining evidence. In an open letter, Cook slammed the demands as a breach of privacy that would have “chilling” effects on public safety and privacy.
In October 2019, Cook was named chairman of the economics school's advisory council at Tsinghua University. He will be in office for three years. He's been on the boards of directors of both Nike and the National Football Foundation. Nike stock is worth $3.4 million to him.
Cook's personal life is well-known for being lonely and secluded. In an essay for Bloomberg Business in 2014, he became the first CEO of a Fortune 500 business to officially identify as gay. “Where I valued my privacy substantially, I felt that I was valuing it too high above what I could accomplish for other people, so I wanted to give everyone my truth,” he said on The Late Show with Stephen Colbert in September 2015. He claimed that he believed that by being transparent, he could influence the young LGBTQ community to not live in fear.
Cook is unmarried and doesn't have any children.
Cook contributed to Barack Obama's and Hillary Clinton's presidential campaigns. Clinton considered Tim as a running mate in her 2016 campaign at one point.
Tim has stated that after he dies, he intends to donate the vast majority of his wealth to charity.
Tim lives in a relatively small 2,400 square-foot home in Palo Alto, California, despite being one of the world's highest-paid business executives. He paid $1.9 million for the residence in 2010, the year before he was elected CEO.
Tim bought a 10,000-square-foot property at the Madison Club, an exclusive gated neighborhood in La Quinta, California, for $10.1 million in 2018.