The IT giant seems to be pleased with the work that its new CEO has been done during the past months. Consequently, Apple announced its decision to give Tim Cook $376 million stock award for his contribution to the company, says CNET.
Tim Cook started taking care of the Silicon Valley’s business in fall 2011. Although his management was initially criticized, Apple is now satisfied with Cook’s results. As a matter of fact, the firm wants to reward its new CEO through a compensation package for the work he did in 2011.
The award amounts to $378 million, according to the public declarations of the spokespersons. The sum comprises a restricted stock that is worth $376 million and other compensations. Cook’s base salary in 2011 was equal to $900,000, but in 2012 the new CEO will receive more money. The company declared that Tim Cook’s salary was raised to $1.4 million this year.
The board of directors stated that the compensation is for “Cook’s performance in assuming responsibility for the company’s day-to-day operations during Mr. Jobs’ prior leaves of absence”. There were several factors that the board of directors took into consideration in order to establish the amount of compensation that the new CEO must receive. According to their declarations, the sum was calculated taking into accounts “the 10-year vesting period of the award, the importance of retaining Mr. Cook, and the opportunities Mr. Cook would likely have if he were to seek other employment”.
Cook proved to be a key member of the company, especially during the times when Apple needed someone to replace Jobs during his medical leaves of absence. Tim Cook was a chief operating officer for seven years until he became the new CEO in August 2011. Cook filled in for Jobs in 2004 and in 2009 when the former CEO suffered a liver transplant.
The first reward he got from Apple was after filling Jobs’ place in 2009. Back then, he received $5 million bonus and 75,000 restricted stock units for his outstanding performance. In 2011 he received 1 million restricted shares of Apple stock a few days after he became the full time CEO of the company.