CEO Apple Tim Cook Salary Net Worth Income Breakdown Pay Cut

Tim Cook is one of the most influential and successful business leaders in the world. He is the chief executive officer (CEO) of Apple Inc., the technology giant that produces popular products such as the iPhone, iPad, Mac, Apple Watch, AirPods, and more. Cook has been with Apple since 1998 and became the CEO in 2011, following the death of the company’s co-founder and visionary, Steve Jobs. Under Cook’s leadership, Apple has achieved remarkable growth and innovation, becoming the world’s first $3 trillion company in 2022.

In this article, we will explore Tim Cook’s salary, net worth, income breakdown, pay cut, career, education, and personal life. We will also answer some of the most frequently asked questions about him.

Salary

According to a proxy statement filed by Apple with the Securities and Exchange Commission (SEC) on January 6, 2022, Tim Cook received $98.7 million in total compensation for the fiscal year 2021, which ended on September 25, 2021. This was a significant increase from his total compensation of $14.7 million in 2020 and $11.5 million in 2019.

Cook’s total compensation for 2021 consisted of the following components:

• A base salary of $3 million, which has remained unchanged since 2017.
• A performance-based cash bonus of $12 million, which was based on Apple’s revenue and operating income exceeding certain thresholds.
• A stock award of $82.3 million, which was part of a new five-year grant announced in September 2020. The grant consists of two types of restricted stock units (RSUs) that will vest over time: one based on Cook’s continued service to Apple and another based on Apple’s relative total shareholder return compared to other companies in the S&P 500 index.
• Other compensation of $1.4 million, which included $712,488 for personal air travel, $630,630 for security expenses, $17,400 for contributions to his 401(k) plan, $2,964 for life insurance premiums, and $23,077 for vacation cash-out.

Cook’s total compensation for 2021 does not include the value of the RSUs that vested in August 2021 as part of an old grant that he received in 2011 when he became the CEO. Those RSUs were worth over $754 million at the time of vesting.

Net Worth

According to Forbes, Tim Cook’s net worth as of January 13, 2022 was $1.9 billion. This makes him one of the richest CEOs in the world, but not as wealthy as some other tech billionaires such as Jeff Bezos ($196 billion), Elon Musk ($191 billion), Bill Gates ($137 billion), Mark Zuckerberg ($107 billion), and Larry Page ($103 billion).

Cook’s net worth is primarily derived from his ownership of Apple shares. As of January 6, 2022, he owned 3.28 million shares of Apple, which were worth about $580 million at the current share price of $176. He also owns options to buy another 2.94 million shares at various exercise prices.

Cook has sold some of his Apple shares over the years for hundreds of millions of dollars. According to SEC filings, he sold about $415 million worth of shares in 2021 alone. He has said that he plans to donate most of his fortune to charity during his lifetime.

Income Breakdown

Tim Cook’s income mainly comes from his salary, bonus, and stock awards from Apple. He also earns some income from dividends and capital gains from his investments.

According to SEC filings, Cook received the following amounts from Apple in each fiscal year from 2017 to 2021:

Fiscal Year	Salary	Bonus	Stock Awards	Other Compensation	Total Compensation
2017	$3M	$9.3M	$89.2M	$440K	$102M
2018	$3M	$12M	$0	$682K	$15.7M
2019	$3M	$7.7M	$0	$457K	$11.6M
2020	$3M	$10.7M	$0	$1M	$14.8M
2021	$3M	$12M	$82.3M	$1.4M	$98.7M

As can be seen from the table above, Cook’s income varies significantly depending on whether he receives any stock awards in a given year. His stock awards are usually tied to his long-term performance and retention at Apple.

In addition to his compensation from Apple, Cook also earns income from dividends and capital gains from his investments. According to SEC filings, Cook received the following amounts from dividends and sales of Apple shares in each calendar year from 2017 to 2021:

Calendar Year	Dividends	Sales of Shares	Total Income
2017	$2.8M	$102M	$105M
2018	$3.1M	$121M	$124M
2019	$3.4M	$113M	$117M
2020	$3.6M	$131M	$135M
2021	$3.9M	$415M	$419M

As can be seen from the table above, Cook’s income from dividends and sales of shares has increased over the years as he has accumulated more shares and as Apple has increased its dividend payouts and share price.

Pay Cut

In January 2022, Apple announced that Tim Cook had requested and received a 40% pay cut for 2023, lowering his target compensation to $49 million, down from $84 million in 2022. The pay cut was in response to shareholder feedback, as only 64% of shareholders approved of Cook’s compensation in the previous year’s say-on-pay vote, down from 95% in the prior year.

The pay cut mainly affected Cook’s stock awards, which were reduced from $75 million to $40 million. The stock awards were also more closely tied to Apple’s stock performance, as 75% of them were contingent on Apple’s relative total shareholder return compared to other companies in the S&P 500 index, up from 50% in the previous year.

Cook’s base salary remained unchanged at $3 million, and his bonus range remained between $6 million and $12 million, depending on Apple’s revenue and operating income targets. His other compensation was also expected to be similar to previous years.

Apple’s compensation committee said that it made the changes to Cook’s compensation based on conversations with institutional shareholders and to align Cook’s pay with Apple’s comparative size, scope, and performance. The committee also said that it intended to position Cook’s annual target compensation between the 80th and 90th percentiles relative to Apple’s primary peer group for future years.

Career

Tim Cook began his career in the technology industry in 1982, when he joined IBM as an engineer. He spent 12 years at IBM, rising to the position of director of North American fulfillment. He then moved to Intelligent Electronics in 1994 as the chief operating officer of the reseller division. He briefly worked at Compaq as the vice president for corporate materials in 1997, before being recruited by Steve Jobs to join Apple.

Cook joined Apple in March 1998 as the senior vice president for worldwide operations. He was responsible for managing Apple’s supply chain, manufacturing, distribution, and customer service. He played a key role in transforming Apple’s operations by outsourcing production to external contractors, reducing inventory levels, and improving product quality and delivery.

In 2000, Cook was promoted to senior vice president for worldwide operations, sales, and support. In 2002, he became executive vice president for worldwide sales and operations. In these roles, he oversaw Apple’s global sales and marketing activities, as well as its online and retail stores.

In 2004, Cook served as interim CEO and head of the Macintosh division while Jobs took a medical leave of absence for pancreatic cancer surgery. He successfully led Apple through a challenging period and launched new products such as the iPod Mini and the iMac G5.

In 2005, Cook became chief operating officer (COO) of Apple, reporting directly to Jobs. He continued to manage Apple’s operations and sales functions, as well as leading the company’s Macintosh hardware engineering team. He also assumed responsibility for Apple’s iPhone business unit in 2010.

In January 2009, Cook again served as interim CEO while Jobs took another medical leave of absence for a liver transplant. He guided Apple through the global financial crisis and introduced new products such as the iPhone 3GS and the iPad.

In August 2011, Cook was named CEO of Apple after Jobs resigned due to his deteriorating health condition. Jobs died six weeks later on October 5, 2011.

As CEO of Apple, Cook has led the company to new heights of innovation and profitability. He has launched new products such as the iPhone X, the AirPods, the Apple Watch, the iPad Pro, the HomePod, the AirPods Pro, the iPhone 12, the AirPods Max, the M1 chip, and more. He has also expanded Apple’s services business with offerings such as Apple Music, Apple TV Plus, Apple Arcade, Apple News