Tim Cook
AppleAbout Tim Cook
Tim Cook, 64, is Apple’s Chief Executive Officer and director since 2011; he joined Apple in March 1998 after leading worldwide operations and later sales, service and support . Under Cook’s tenure, Apple’s cumulative TSR rose approximately 1,908% through the end of 2024, with market capitalization up by more than $3 trillion . Apple reported FY2024 net sales of $391.0B and operating income of $123.2B , and Apple’s 2024 absolute TSR was 33.72% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Apple | Senior Vice President, Worldwide Operations | 1998–2000 | Led global operations |
| Apple | SVP, Worldwide Operations, Sales, Service and Support | 2000–2002 | Expanded leadership scope to sales/service |
| Apple | EVP, Worldwide Sales and Operations | 2002–2005 | Ran global sales and operations |
| Apple | Chief Operating Officer | Oct 2005–2011 | Managed worldwide operations, sales, service, support |
| Apple | Chief Executive Officer; Director | 2011–present | Led strategy, innovation and scale; director since 2011 |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| NIKE, Inc. | Director (public company) | Current | Other Public Company Boards: Current: NIKE |
| The National Football Foundation & College Hall of Fame, Inc. | Director | Current | Non-profit board service |
| Duke University | Board of Trustees | Current | Academic governance |
| Malala Fund | Leadership Council | Current | Advocacy for girls’ education |
Fixed Compensation
| Component (CEO) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $3,000,000 | $3,000,000 | $3,000,000; unchanged since 2016 |
| Target Cash Incentive ($) | $6,000,000 (200% of salary) | $6,000,000 (200%) | $6,000,000 (200%) |
| Actual Cash Incentive Paid ($) | $12,000,000 | $10,713,450 | $12,000,000 (max payout) |
Perquisites (2024): Security services $783,617 and personal air travel $655,883 (Board requires private aircraft usage); 401(k) $20,700; life insurance $2,964; vacation cash-out $57,692 .
Performance Compensation
| Equity Award Structure (CEO) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Target Equity Award Value ($) | $75,000,000 | $40,000,000 | $50,000,000 (raised from $40M) |
| Mix | Predominantly RSUs; Apple does not grant options | 75% performance RSUs / 25% time RSUs | 75% performance RSUs / 25% time RSUs |
| CEO 2024 Grant Detail | — | Granted 10/01/2023: 219,030 target PBRSUs; 73,010 TBRSUs | Performance period for 2024 grant: 2024–2026; vest 10/01/2026 |
Annual Cash Incentive (2024):
- Financial metrics: Net Sales and Operating Income, equally weighted; threshold 50% of target, target 100%, maximum 200% per metric .
- Results: Net Sales $391.0B and Operating Income $123.2B achieved maximum goals; payout 200% of total target; no values-modifier applied .
Performance RSUs mechanics:
- Vesting scale vs S&P 500 Relative TSR: 85th percentile = 200%, 55th = 100%, 25th = 25%; if TSR negative, vesting capped at 100% .
- Results: 2020 grant vested 10/01/2023—Cook vested 511,000 PBRSUs (153% of target) ; 2021 grant vested 10/01/2024 at 187% of target (477,301 PBRSUs) .
Multi-Year CEO Compensation
| Metric ($) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | $3,000,000 | $3,000,000 | $3,000,000 |
| Stock Awards (grant-date fair value) | $82,994,164 | $46,970,283 | $58,088,946 |
| Non-Equity Incentive (Cash) | $12,000,000 | $10,713,450 | $12,000,000 |
| All Other Compensation | $1,425,933 | $2,526,112 | $1,520,856 |
| Total | $99,420,097 | $63,209,845 | $74,609,802 |
| CEO Pay Ratio | — | — | 650:1 (2024) |
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Beneficial Ownership (as of Jan 2, 2025) | 3,280,180 shares held via trust; less than 1% of outstanding 15,037,874,000 shares |
| Hedging/Pledging | Prohibited for directors and executive officers |
| CEO Ownership Guideline | 10x annual base salary; all 2024 named executive officers hold shares in excess of guidelines |
| Stock Options | Apple does not currently grant options to employees |
Unvested and Scheduled Vesting (as of Sept 28, 2024):
- Time-based RSUs unvested: 111,329 (vests 4/1/2025); 170,160 (two installments of 85,080 on 4/1/2025 and 4/1/2026); 66,477 (three annual installments beginning 4/1/2025); 73,010 (three annual installments beginning 4/1/2026) .
- Performance-based RSUs target unearned: 199,429 (vesting 10/01/2025, subject to Relative TSR); 219,030 (vesting 10/01/2026, subject to Relative TSR) .
Stock vested in 2024: Cook 707,410 RSUs; value realized $122,808,793 including $1,924,891 dividend equivalents .
Employment Terms
| Term | Detail |
|---|---|
| Employment Contract | At-will; no employment contracts |
| Change-of-Control Economics | No cash severance arrangements and no acceleration or payments upon change of control |
| Severance / Termination | Time-based RSUs accelerate upon death; disability provisions vary (full for Cook, pro-rata for others). Cook’s awards include retirement vesting provisions (age ≥60 and ≥10 years at Apple) with pro-rata TBRSU and continued right to earn PBRSUs if retirement occurs ≥1 year post-grant; settlement on original schedules; no acceleration of delivery |
| Estimated Vest Value on Sept 28, 2024 | Cook: Retirement $283,585,647; Death/Disability $406,540,649 (including dividend equivalents) |
| Clawbacks | Mandatory (Exchange Act 10D-1) and discretionary recoupment policies covering cash and equity awards for misconduct and certain restatements |
| Tax Gross-ups | No tax gross-ups on perquisites; Cook recognizes imputed income for aircraft use; no reimbursement |
| Deferred Compensation | Cook deferred $236,538 of 2024 base salary; aggregate balance $257,220 |
| Perquisites | Board requires Cook to use private aircraft; personal security services. 2024 incremental costs: security $783,617, personal air travel $655,883 |
Board Governance
- Structure and independence: Independent Chair (Art Levinson); Chair and CEO roles separated; all directors except Cook are independent under Nasdaq rules .
- Committees:
- Audit & Finance: Ron Sugar (Chair), Wanda Austin, Monica Lozano, Sue Wagner; nine meetings in 2024 .
- People & Compensation: Andrea Jung (Chair), Alex Gorsky, Art Levinson; four meetings in 2024 .
- Nominating & Corporate Governance: Sue Wagner (Chair), Alex Gorsky, Andrea Jung; four meetings in 2024 .
- Board/meeting attendance: Board met five times in 2024; all directors met ≥75% attendance and attended the 2024 annual meeting; quarterly executive sessions without management .
- Director compensation: Non-Employee Directors receive cash and RSUs; as an employee, Cook receives no director compensation .
Compensation Peer Group (Benchmarking)
- Target percentile: CEO total target compensation positioned between the 80th–90th percentile of primary peer CEOs; 2025 structure unchanged .
- Current primary peer group (May 2024): Alphabet, Amazon, AT&T, Broadcom, Cisco, Comcast, Disney, Intel, Mastercard, Meta, Microsoft, Netflix, NVIDIA, Oracle, Qualcomm, Salesforce, Tesla, Verizon, Visa, Warner Bros. Discovery .
Say-On-Pay & Shareholder Feedback
- Approval: 92% of votes cast supported executive compensation at the 2024 Annual Meeting; no structural changes in 2024 .
Financial Performance Context
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|---|
| Revenues ($USD) | $365,817,000,000* | $394,328,000,000* | $383,285,000,000* | $391,035,000,000* | $416,161,000,000* |
| Operating Income ($USD) | $108,949,000,000* | $119,437,000,000* | $114,301,000,000* | $123,216,000,000* | $133,050,000,000* |
| EBITDA ($USD) | $120,233,000,000* | $130,541,000,000* | $125,820,000,000* | $134,661,000,000* | $144,748,000,000* |
Values retrieved from S&P Global.*
Investment Implications
- Pay-for-performance alignment: Cook’s compensation is predominantly long-term equity with 75% performance RSUs tied to S&P 500-relative TSR and rigorous cash bonus metrics (Net Sales and Operating Income), supporting alignment with shareholder returns and sustained profitability .
- Retention and succession dynamics: Retirement eligibility plus pro-rata/continued vesting terms reduce forced turnover risk but create a predictable vesting calendar (major dates: 4/1/2025, 10/1/2025, 4/1/2026, 10/1/2026) that can drive periodic supply via tax withholding or planned dispositions; clawbacks and hedging/pledging bans mitigate risk of misalignment .
- Governance quality: Separation of Chair/CEO and fully independent committees, strong ownership guidelines, and high say-on-pay (92%) indicate robust oversight; no change-of-control cash or tax gross-ups lowers parachute risk .
- Trading signals: Large vesting events and prior high-value vest realizations (e.g., 477,301 PBRSUs on 10/01/2024) suggest concentrated dates for potential insider activity; monitoring Form 4s around these events is prudent .