CEO Tim Cook’s pay package comes under the scanner of shareholders adviser firm Rockville. The officials recommend Apple Inc.’s investors to oppose Tim Cook’s $99 million packages.
Tim Cook’s awards in 2021 are being questioned that his performance has not so far helped in increasing the share prices of Apple. His awards are time-based and the shareholders are not satisfied with his professional acumen. This comes from Rockville an Institutional Shareholder Service (ISS) firm based out of Maryland, US.
ISS requested the shareholders to absolutely oppose the current pay package as the award, should Tim Cook choose to retire will continue to fetch him rewards. The ISS wants this to take over at Apple Inc.’s annual meeting scheduled on March 4th. In a report, ISS said, “There are significant concerns regarding the design and magnitude of the equity award made to CEO Cook.”
Usually to retain high-performing or crucial to business kind of employees of any company the overall package is distributed into either stocks or options. And upon satisfactory performance, added incentives are awarded as well. In 2021 Cook’s stock awards alone were evaluated at $82 million. It doesn’t end there. He was given a cash bonus of $12 million + $ 3 million pay and other perks.
A decade ago when Tim Cook took over the management from Steve Jobs he had taken a mammoth award from Apple Inc. which was $750 million. And then the pay package now in question and other perks are the first since he collected that award 10 years ago.
Apple Inc. while filing last month divulged Cook’s pay package and will now hold it to a non-binding vote. Cook’s perks in 2021 included equity awards wherein by 2025 he could have up to 1 million shares. For this year his pay scale is already decided by Apple Inc. however, last year in September a restricted stock was awarded to him that could, if evaluated cross 750,000 shares.
So far Apple stock owners have encouraged Tim Cook and all their high flying high-performing executives. And interestingly at the 2021 company’s annual meet-up, about 95% had voted to back their executives holding a blue-collared compensation program.