Tim Cook’s $99 million Apple payment opposed by shareholder group

Institutional Shareholder Services, a shareholder advisory group, is asking Apple investors to vote against CEO Tim Cook’s 2021 payout of $98.7 million – reports The Financial Times.

Last year, the 61-year-old executive received $82 million in stock, a $12 million cash bonus and $3 million in salary, as well as $630,630 in personal security allowance and $712,488 for his personal use of a private jet.

ISS reportedly told clients in a letter that “there is significant concern” about the stock award given to Cook, which was the Apple chief’s first since 2011, and also added that the benefits enjoyed the PDG “significantly exceeded” those offered by comparable companies last year.

Institutional Shareholder Services advises some of the largest investment funds and financial institutions on corporate governance and shareholder votes, controlling 61% of the business. It’s the first time since 2015 that the advisory group has recommended shareholders vote against Apple’s compensation.

Shareholder votes on Apple’s executive compensation packages are advisory only and do not guarantee a response from the company’s board. However, a significant investor protest could prompt the board to reconsider compensation plans.

Apple’s board, in its annual proxy statement released last month, noted that revenue and profit in 2021 “significantly exceeded” company targets, triggering the maximum bonus payments. based on leadership performance.

Apple has had a stellar 2021 as sales soared and the company moved ever closer to the $3 trillion market cap (finally hitting that target earlier this year). For the fiscal quarter alone that ended Dec. 25, 2021, the iPhone maker reported record revenue of $123.9 billion and net income of $34.6 billion.

The company’s board said in its proxy filing that the compensation committee “will continue to consider shareholder feedback and the results of the say-on-pay votes when making future compensation decisions.” .