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Apple CEO's pay package drops from $461m to $5m

Published: 8:27AM Friday December 28, 2012 Source: Reuters

  • Apple CEO Tim Cook speaks in front of an image of the Shanghai Apple Store (Source: Reuters)
    Apple CEO Tim Cook speaks in front of an image of the Shanghai Apple Store - Source: Reuters

Tim Cook has finally made it to the top at Apple Inc, but in his first full year as CEO his pay package shrank about 99%.

Cook, the successor to the late Steve Jobs, was awarded total compensation of US$4.17 million (NZ$5 million) in 2012, down from US$378 million (NZ$461 million) in 2011, Apple said in a federal filing on Thursday.

The 2012 compensation package for Cook, who took over as chief executive in August 2011, also seemed a pittance compared with his 2010 pay, which was 14 times higher, when the executive served as chief operating officer.

Jobs, the iconic CEO and co-founder, died in October 2011 of pancreatic cancer.

The maker of the iPhone and iPad noted that Cook will not receive any stock awards for 2012 after he was given about $376.2 million in stock awards the year before. The stock awards vest over many years.

The 2012 package includes a salary of $1.4 million and a nonequity bonus of $2.8 million, according to the filing. Cook's base salary actually increased compared with the $900,000 he earned in 2011.

While Apple's shares are 35% higher than when Cook assumed the CEO role, they have fallen more than 27% since October when they hit a $700.10 high.

Apple shares were down 0.6% at $509.85 on the Nasdaq late on Thursday morning.