Cook Tim (Tim Cook)

Biography

Tim Cook was born in 1960 in the US state of Alabama in the family of a shipyard worker and a housewife.

In 1982 he graduated from Auburn University with a degree in Production Organization, and six years later he studied for a master's degree in business administration at the School of Business at Duke University.

During his long career, Tim Cook worked for Intelligent Electronics, in which he served as COO (COO) in the personal computer sales division.

• For 12 years, Tim Cook worked at IBM, where he controlled the PC manufacturing and distribution business in North and Latin America

• After working at Compaq Computer, which later became part of HP.

• In 1998, Cook joined Apple as vice president of global operations. Moving up the career ladder, he was responsible for Apple's activities in the global market, global sales, maintenance and technical support. In 2007, he was appointed Chief Operations Officer of the company. As chief operating officer, he was involved in managing Apple's activities and organizing supplies. Cook was responsible for global sales, services and international support for Apple products.

As a logistics expert, Cook masterfully secured contracts for Apple to supply key components for its devices. By achieving the most profitable deals, he helped achieve higher profitability and compete in the market, writes The New York Times.

The results of this work are easy to see. For example, there is still not a single tablet on sale that could compete with the iPad in terms of price-quality ratio. The same applies to the MacBook Air released in 2008. Intel only now (August 2011) has set about creating similar Windows-based systems with its partners, but so far they have not been able to bring the cost of similar models closer to an Apple laptop.

Cook expressed his life credo in a speech to students at a university in the United States (Auburn University), during which in 2010 he stated: "I will prepare. And my hour will break. "

2011: Appointment as head of Apple

• On August 24, 2011, Apple CEO Steve Jobs resigned as CEO. "To maintain continuity, I strongly recommend that my successor, Tim Cook, be appointed," Jobs wrote in his letter. On the board, Jobs was elected to the position he claimed: chairman of the board of directors of Apple. Jobs' place in the company was taken by Tim Cook.

Tim Cook is Jobs' antipode, The New York Times wrote. If Jobs is a fidget with an explosive character, then Cook is a calm, polite and suave person. "The most important thing about Jobs is not his genius or charisma, but his extraordinary ability to take risks," says Alan Deutschman, author of the biographical book The Second Coming of Steve Jobs. "Apple is the most innovative company because Jobs was not afraid to make extremely risky decisions, which is very rare in American business." Naturally, this manner of control is a consequence of his character, which is the opposite of the character of Tim Cook.

On October 5, 2011, Jobs died. Simultaneously with the assumption of new duties, Cook received a bonus in the form of shares worth $376 million. However, if he suddenly decides to leave the company, he will be deprived of this bonus.

2012: The most expensive US manager on the list of the most influential people in the world

In November 2012, it became known that Apple CEO Tim Cook topped the CNBC list of the highest paid executives of American corporations.

The annual salary of 52-year-old Tim Cook is $95 million, while in 2012 the size of his share capital in the company increased by 32.6%^[1].

• Tim Cook entered the ranking of 100 influential people in the world for 2012 (The 100 Most Influential People in the World) according to Time magazine.^[2] Among the representatives of the IT industry, in addition to Cook, only the hacker group Anonymous is collectively present in the ranking, and among Russians - the famous lawyer and blogger Alexei Navalny.

Time writes that 51-year-old Cook at this point heads the company with one of the largest capitalizations in the world (600 billion dollars as of April 2012). Despite the invisibly present shadow of the deceased Steve Jobs, Tim Cook has repeatedly proved himself as a manager of the highest level.

During this period, Cook is at the peak of his career and the global IT industry as a whole.

2015: Apple's Tim Cook security costs

In early August 2015, Apple's security costs for Tim Cook became known. It turned out that the protection of the CEO costs the corporation half as much as the cost of similar needs in the case of ex-head of Oracle Larry Ellison.

Journalists examined a report called Schedule 14A sent by Apple to the U.S. Securities and Exchange Commission (SEC). The documents report that in 2014 Apple spent almost $700 thousand on Tim Cook's security. This figure is accompanied by the following comment:

"As a rule, Apple does not provide managers with benefits that are not available to other employees. At the same time, the company, not counting this for privilege, provides Mr. Cook with personal and home security, since it is of paramount importance to the company and its shareholders. "

Tim Cook is known to be a supporter of a healthy lifestyle and often visits gyms, so he is ready to stand up for himself when meeting hooligans. At public events, the head of Apple, as a rule, does not appear surrounded by bodyguards, but they are certainly nearby and, in case of danger, are ready to protect him.

Tim Cook's security costs are not considered the highest in the IT industry. So, according to Equilar, a company that analyzes compensation packages for senior managers, in 2013 Amazon spent $1.6 million on security for its head Jeff Bezos. The same item of expenses in Oracle assumed costs of $1.5 million, they were received by the then CEO Larry Ellison.

Meanwhile, it also follows from the Schedule 14A report that in 2014 Apple paid Tim Cook insurance premiums and vacation pay of $2,520 and $56,923, respectively. The salary of the manager amounted to $1.7 million, the size of various bonuses - $6.7 million.^[3]

2016: First pay cut as Apple CEO

In January 2017, it became known about the first reduction in payments to Tim Cook as CEO of Apple. The American company cut salaries to top managers due to unfulfilled income tasks.

According to The Wall Street Journal (WSJ), citing materials sent by Apple to the US Securities and Exchange Commission, in 2016 Apple paid Tim Cook $8.75 million, which is 15% less than a year earlier. The cash premium, which depends on Apple's financial performance, decreased from $8 million to $5.4 million, although wages increased by 50% to $3 million.

Apple's five highest paid directors earned a total of $22.8 million in 2016 against $25 million the previous year. This amount includes basic salaries in the amount of $2.8 million and shares with limited circulation in the amount of $20 million.

At the end of the fiscal year, which ended on September 24, 2016, Apple's revenue reached $215.6 billion, which is 3.7% less than the target result. The plan for operating profit is underfulfilled by 0.5% (amounted to $60 billion). The WSJ notes that Apple recorded sales and profits below its own expectations for the first time since 2009.

The main reason for the fall in Apple's revenue is related to smartphones. Their sales in fiscal 2016 fell for the first time in the company's history (to 212 million units), and Apple's consolidated revenue fell for the first time in 15 years. The iPhone accounts for about 63% of the corporation's turnover.

Despite the financial decline, Apple remains the most expensive company in the world with a market capitalization of more than $600 billion. In addition, Apple is the most profitable American corporation (in fiscal 2016, its net profit was measured at $45.7 billion). In 2016, Apple shares rose 10%.^[4]

2017

Record bonus

At the end of August 2017, it became known about the record bonus that Apple paid Tim Cook in many respects for the company's successful performance.

According to the Bloomberg news agency, citing materials that Apple provided Securities and Exchange Commission USA (SEC), the company issued 56-year-old Tim Cook 560 thousand shares in the amount of $89.2 million (based on the rate of quotations on the day of actual consideration - August 24, 2017). This is the largest payment provided for by Apple's long-term compensation program.

The publication notes that half of the specified bonus refers to securities that Apple promised to transfer to the ownership of Tim Cook at the time of his assumption of the position of CEO. The top manager received the rest of the fee thanks to the rise in the company's quotes.

In three years, Apple shares have risen in value more than two-thirds of other S&P 500 companies. During this period, the yield on the producer's securities iPhone amounted to 70.6%, this is the 80th indicator out of 420 index companies.

In August 2017, Apple shares hit an all-time high after posting quarterly earnings that came in above Wall Street forecasts and raising its full-year revenue guidance.

According to the agency, the value of almost 3 million Apple shares, which have yet to be received by Tim Cook, at the exchange rate on August 28 is about $484 million. It is also noted that the head has securities with a total value of $145 million.

In 2015, Cook announced plans to spend most of his fortune on charity after paying for his 10-year-old nephew's education. At that time, the value of Cook's assets, given his stake in Apple, was slightly less than $120 million.^[5]

Apple paid Cook more than $100 million

In the 2017 fiscal year, which ended at the end of September 2017 for Apple, Tim Cook earned more than $100 million as CEO of the American company.

As follows from the materials published by the US Securities and Exchange Commission (SEC), Tim Cook's annual salary amounted to $3.06 million, which is approximately the same as a year ago. Another $9.33 million was paid in bonuses. Most of the earnings came from rewards in the form of shares - $89.2 million. Thus, the compensation package of the head of Apple reached about $102 million.

Since most of the earnings of the CEO of Apple are tied to shares, his income increased following a 39 percent increase in the corporation's quotes in fiscal year 2017. By comparison, the S&P 500, which includes Apple and other American IT companies, has doubled at a slower pace.

In 2017, Apple spent $93.1 thousand on Tim Cook's weekly travels on a private plane, and $224.2 thousand was allocated for personal security.

Other top Apple managers earn an order of magnitude less than the head of the company, but we are still talking about considerable amounts. During the reporting year, five executives - Chief Financial Officer Luca Maestrie, Senior Vice President of Retail Angela Ahrendts, Senior Vice President of Hardware Technology Jony Srouji, Apple Senior Vice President of Hardware Development Dan Riccio and General Counsel Bruce Sewell (Bruce at $24.2 million) added to its $24.2 million condition. This includes bonuses, various additional payments and salaries.

As noted by Bloomberg, Apple listed to top management larger cash bonuses compared to targets, as the company exceeded its revenue and operating profit plan.^[6]

2018

Opinion on watching porn on iPhone

In late March 2018, Tim Cook expressed his opinion on watching porn on an iPhone. The position of the head of Apple goes against the one that was once voiced by Apple co-founder Steve Jobs.

In an interview with the American channel MSNBC, Tim Cook said that Apple is categorically against the sale of applications containing pornographic content in the App Store, but no one forbids users to find videos of this content themselves on the Internet.

This does not mean that you cannot use your iPhone to go to your browser and visit some porn sites if you want. I don't mind, - said the CEO of Apple, adding that such measures are being taken to protect children from access to prohibited content.

The question of pornography on mobile devices did not arise by chance. Steve Jobs has said more than once that he does not want his smartphone to be a "trash heap" and called the iPhone free from pornography. In an interview, Jobs invited everyone to watch porn to purchase an Android device.

We have a moral responsibility to keep pornographic material away from the iPhone. For those who are interested in pornography, it is better to buy a phone on Android, he said.

In a conversation with MSNBC correspondent Tim Cook said that iPhone and iPad users have a simple opportunity to protect their children from watching "adult" content. The head of Apple was referring to the Restrictions feature^[7]

Earlier, Apple bought up sites whose names mention the words iPhone and which previously redirected users to porn resources for mobile devices. So, in 2011, the company bought the following sites:

• iphonecamforce.com
• iphonecam4s.com
• iphoneporn4s.com
• iphonesex4s.com
• iphonexxxforce.com
• iphone4s.com
• porn4iphones.com

Clothing style and budget counterparts

Tim Cook always has a business style. To sound like an Apple chapter in clothes, you don't need much: a Uniqlo sweater ($14.9), tight-fitting J. Crew jeans ($68) and comfortable Brooksbrothers sneakers ($78).

Tim Cook received $650 million in shares from Apple during the entire leadership of the company

At the end of August 2018, it became known that during his seven years as CEO of Apple, Tim Cook received shares from the company totaling $650 million. In 2018 alone, the chapter was given securities worth $121 million, which were cashed out. True, a considerable part of this amount went to taxes.

According to the terms of the employment contract, if Apple is performing higher than two-thirds of other companies in the S&P 500, then Tim Cook annually receives shares with limited circulation, which a top manager can sell or keep. According to the Financial Times, in terms of total shareholder returns over three years, Apple is in 50th place among 423 companies in the index.

Cook was one of the highest paid CEOs in the IT industry over the past seven years. Apple's stock price has risen almost four times since receiving 7 million shares, when Tim Cook was first selected as CEO, said Alex Knowlton, senior research analyst at Equilar, a compensation company.

According to Equilar, in addition to shares worth $650 million, Tim Cook was paid a salary and other bonuses, taking into account which the total amount of remuneration since 2011 reached $701 million. By the end of August 2018, Apple's CEO has more than 800 thousand shares worth $195 million, Business Insider reports.

The stock accounts for most of Tim Cook's fortune. He also receives royalties for serving on Nike's board of directors and earns from various investment projects. In the fall of 2017, Equilar estimated Cook's fortune at $625 million.

Tim Cook has repeatedly stated his intentions to spend his fortune on charity. In 2018, he transferred 23.2 thousand Apple shares worth $5 million for this purpose. Cook said he was trying to develop a more "systemic approach" to philanthropy that would go beyond simply writing checks.^[8]

2019: Investing in cost-effective shower systems developer Nebia

In February 2019, it became known that Apple CEO Tim Cook and former Google CEO Eric Schmidt invested in startup Nebia. Thanks to money from these and other investors, the company released a commercial product and began updating it. Read more here.

2020

Reward for $278 million

In August 2020, Apple CEO Tim Cook receives an annual reward from the company - 560 thousand shares worth $278.6 million.

The top manager will receive part of this remuneration for managing the company, the other part for achieving its financial indicators.

The second part of the payout is tied to Apple's share price relative to other S&P 500 firms over the past three years.

On August 10, 2020, Tim Cook became a billionaire amid the growth of Apple's capitalization. On August 19, it exceeded $2 trillion, in two years Apple doubled its market value. In 2011, the company cost $350 billion.

Grant in the form of Apple shares for $38 million

In September 2020, Apple handed the head of the company Tim Cook a grant in the form of securities, which happened for the first time since 2011, follows from the company's documents for the US Securities and Exchange Commission (SEC).

The document notes that the grant consists of derivatives for more than 330 thousand securities of the company. At the end of trading on Tuesday, Apple shares were worth $114.09. Based on this, the package can be estimated at almost 38 million. dollars

Increase in payments as CEO of Apple by 28%

Payments to Apple CEO Tim Cook in 2020 increased by 28% to $14.77 million. This increase in the income of the company's CEO was facilitated by the COVID-19 coronavirus pandemic, thanks to which there was a surge on personal computers and tablets used to work and learn from home.

According to documents that Apple provided to the US Securities and Exchange Commission (SEC), Tim Cook's cash premium at the end of 2020 amounted to $10.7 million, which is 40% more than a year ago. In 2019, this top manager bonus was cut by 36% due to a drop in Apple's revenue and profit amid weak iPhone sales, MarketWatch recalls.

The publication also noted that in 2020, despite the COVID-19 coronavirus pandemic, Apple's profit increased by 3.9%, and the company's share price increased by more than 80%, its capitalization exceeded $2 trillion. One of the catalysts for the growth of quotations was the smartphones iPhone 12.

Tim Cook's salary at the end of 2020 did not change compared to 2019 and amounted to $3 million. Apple's CEO received a little more than $1 million more as an additional premium, which is indicated in the documents for the SEC in the column "all other rewards."

In addition, in 2020, Cook took over Apple shares worth $281.9 million, which he received as part of a long-term package of payments issued in 2011, the SEC said.

In 2020, Apple spent $470,246 for the year to ensure the security of the CEO and $432,564 for his air travel. The company requires its head to use only private jets for business and personal travel.

In 2020, Tim Cook, according to the calculations of the Bloomberg Billionaires Index, became a billionaire - his fortune exceeded $1 billion amid an increase in the value of Apple shares.^[9]

2021

Meeting with Ukrainian President Volodymyr Zelensky

On September 2, 2021, the president Ukraine Volodymyr Zelensky met with CEO Apple Tim Cook at the headquarters of the American corporation. Here is what the Twitter Ukrainian leader wrote in his blog following a conversation with the head of the company that produces and: iPhone iPad

Excited to meet Tim Cook, who runs a company that inspires digitalization advocates around the world. Ukraine is already a global IT hub. We are interested in expanding Apple's presence in Ukraine and implementing new ambitious joint projects.

According to the press service of the President of Ukraine, Zelensky told Cook about Ukraine's achievements in the IT sphere and expressed interest in further expanding Apple's presence in the country, in particular thanks to online support teams, moderators of Apple Music and AppStore, as well as device service.

Zelensky presented Tim Cook with the Dіya City project, within which IT companies will be provided with a special legal regime. The parties discussed the possibility of Apple building a data center for iCloud services in Ukraine, localizing Siri, cooperation in the direction of education and providing schools and teachers with computer equipment.

According to media reports, as part of the tour, Zelensky is to meet with Tesla and Space CEO Hylon Musk, as well as Amazon founder Jeff Bezos.

President of Ukraine Volodymyr Zelenskyy spoke at Stanford University in early September 2021. On Twitter, he called his country a world IT hub and said that Kyiv is interested in implementing Apple projects in Ukraine, and during his speech compared the fate of Ukraine with the fate of the company.

Probably the most famous speech heralded here at Stanford is that of Steve Jobs. Once Apple began its journey in the garage, began its journey with seemingly crazy ideas. Ukraine has a similar situation: once the team and I sat in a small office, generated ideas that no one believed in, which were said about what Steve Jobs was often told: this is impossible, "Zelensky said.[10]

Buying a home in California for $10 million

At the end of September 2021, information appeared that Apple CEO Tim Cook bought a house in California for $10 million. The estate is in the upmarket Madison Club neighborhood. Other home owners at the Madison Club include Lori Loughlin and Mossimo Giannulli, Cindy Crawford, Kourtney Kardashian, Kris Jenner, Nike founder Phil Knight and Scooter Braun. Glenn Cassell of Hideaway Properties Corporation led both sides of the deal.

Although the MLS listing service claims that Tim Cook paid $10.1 million for his estate at the Madison Club, the open documents indicate an amount of $9.1 million. The property was put up for sale for $11.5 million, a plot of 0.32 hectares as of September 29, 2021, costs about $12 million.

The sprawling house with an area of ​ ​ 929 square meters. m resembles the Germanic style. The company-built Discovery Land house has several shades of brown and beige, with white and gray dominating the interior.

Other amenities include a living room, executive's office and a bar with a pool table. There are also two kitchens, one for foodies, the other a butler's kitchen, each equipped with top-notch appliances. Automatic glass pocket doors allow you to freely leave the house on the street.

The backyard of the house faces west, where it overlooks the Santa Rosa Mountains. The backyard has a pool with a side, its own bar and Baja shelf for sunbathing, as well as a patio with a fireplace and built-in barbecue. Air-conditioned loggias are an ideal place for outdoor entertainment, and for socializing, all Madison Club residents have access to a centrally located club house with sophisticated restaurants and exclusive spas and gyms.

By September 2021, Tim Cook, 60, has been Apple's CEO for more than a decade. Its main residence is still in Palo Alto, in northern Silicon Valley in the Bay Area.^[11]

Receiving payments from Apple in the amount of $98.7 million

In the 2021 fiscal year, which ended at the end of September 2021 for Apple, the company paid CEO Tim Cook a little more than $98.7 million against $14.7 million a year earlier. This is stated in the documents that Apple provided to the US Securities and Exchange Commission (SEC). The report was released in early January 2022.

Most of Tim Cook's compensation package came from stocks (about $82.3 million). True, these securities, according to an agreement concluded between Cook and Apple in early 2021, are subject to restrictions on the sale or transfer to other persons. The top manager will be able to sell the shares received in a few years.

The salary of the head of Apple amounted to $3 million, a cash bonus for fulfilling financial and environmental tasks - $12 million.

It also follows from the report that Apple spent more than $712,000 on private air travel of its CEO. Since 2017, Cook has stopped flying regular commercial flights for "efficiency and safety," the document says.

Payments to Tim Cook as CEO of Apple were 1,447 times the average salary at the corporation of $68,254. At the end of 2021, Apple decided to pay giant bonuses to valuable employees so that they would not be lured away by competitors. To some engineers, the company offered rewards in the form of shares equivalent to $ 50 000-180 000. For many of them, this is comparable to their annual income.

The report to the SEC also highlights that under Cook's leadership, Apple has had an "outstanding decade" in which its stock prices have climbed more than 1,100%, nearly triple the S&P 500's growth momentum.

In total, for the entire time of Apple's leadership, Cook received $754 million in shares from the company. Earlier, the top manager said that he plans to direct most of the fortune to charity.^[12]

2023:40% reduction in payout due to weak company performance

On January 12, 2023, it became known that the monetary remuneration to Apple CEO Tim Cook was reduced by 40% due to the company's weak financial results. Moreover, the corresponding request was received, among other things, from the head of the company from Cupertino.

According to documents sent to the US Securities and Exchange Commission (SEC), in 2023 Tim Cook will receive a reward of $49 million. This is more than 40% less compared to payments in 2022. For 2022, the head of Apple received compensation in the amount of $99.4 million, including $3 million in base wages, as well as about $83 million in shares and bonuses. This is slightly more than in 2021, when its total revenue was $98.7 million.

It is noted that the preparation of the document took into account the feedback of shareholders, the activities of the company and the recommendation directly by Tim Cook regarding the adjustment of his remuneration in the light of the current situation. The base salary of the Apple CEO in the amount of $3 million will remain the same. According to Forbes, the personal fortune of Tim Cook, who has led Apple since 2011, is estimated at $1.7 billion.

The Remuneration Committee weighed shareholder feedback, Apple's exceptional performance and Cook's recommendation to adjust his compensation in light of the feedback received, the SEC documents said.

Apple also disclosed compensation for 2022 to Chief Financial Officer Luca Maesti, General Counsel Kate Adams, Retail Director Deirdre O'Brien and Chief Operating Officer Jeff Williams. All these executives were paid about $27 million in 2022, including actual wages, shares and bonuses, which is slightly more than in the previous year. The Cupertino-based tech giant announced that its annual shareholder meeting will take place in a virtual format on March 10, 2023.^[13]

Notes