Apple’s CEO Tim Cook has the best pay-for-performance rating according to Bloomberg’s Pay Index which ranks the highest-paid U.S. executives.
Cook received US$65.2 million last year. During the three financial years that he has run Apple the company’s net income and revenue have increased by 53 percent and 69 percent respectively. The company’s net income was US$39.5 billion, its revenue was $US183 billion, and iPhone sales doubled to US$102 billion in the last fiscal year. Tim Cook’s pay package also makes him the 17th highest paid executive.
“Apple is just unbelievably killing it,” said Dan Ernst, an analyst at Hudson Square Research in New York. “A good leader like Cook builds a team around him that can do the job.” The pay-for-performance measure is calculated by calculating the executive’s pay as a percentage of a company’s profit. According to the rating, Cook’s compensation is 0.2 percent of Apple’s economic profit. This proves that investors in Apple are getting a very high return on investment on Cook. Cook was paid US$9.2 million last year, which includes a salary of US$1.8 million, a US$6.7 million bonus and US$699,133 worth of securities. In addition, the CEO received 80,000 restricted stock units from Apple in August 2011 which turned into 560,000 restricted shares following a seven-for-one stock split. The shares were valued at US$56 million at the end of the fiscal year in September last year.
The other executives on the list include Microsoft’s Satya Nadella, Exxon Mobil’s Rex Tillerson and Microsoft’s CEO Nadella is the second-best deal for investors, her US$43.5 million dollar’s paid to her last year equalled only 0.4% of Microsoft’s US$12.1 billion profit. Tillerson is the third-best deal with his US$32.3 million pay being only 0.7 percent of Exxon Mobil’s US$4.8 billion average profit. Coca Cola’s Muhtar Kent hit the fourth spot. Steven Mollenkopf, the CEO of Qualcomm, the world’s biggest manufacturer of chips used in mobile phones, ranked fifth with his US$37.1 million salary which equalled to only 1.7% of Qualcomm’s economic profit.
The Bloomberg Pay Index rates the 100 highest-paid executives, regardless of their title, who appear in the records for companies trading on U.S. security exchanges.