Forbes reports that Tim Cook, Apple’s CEO, has a net worth of $2.1 billion.
PHOTO Courtesy | Laura Hutton/Shutterstock
In his tenth year at the helm of the tech giant, Apple’s CEO Tim Cook achieved billionaire status and has generously donated shares worth hundreds of millions to charitable causes.
According to U.S. magazine Forbes, Cook’s net worth reached $2.1 billion on Monday, doubling from August 2020 when he initially entered the billionaire ranks.
Joining Apple in 1998, Cook played a pivotal role in steering the company to become the first globally to attain a $1 trillion market capitalization, later surpassing the $3 trillion milestone last year.
Renowned for his substantial compensation, Cook ranks among the highest-paid executives in the U.S. In the past year, Apple rewarded him with a salary and bonus totaling $63.2 million, supplemented by an additional $2.5 million covering expenses such as security and private jet travel.
Additionally, at 64, Cook has served as a board member for the sports apparel giant Nike since 2005, earning millions annually from this role.
Tim Shares of the Apple Stock
Upon assuming the CEO position, Tim received a substantial grant of options that vested over ten annual increments (he received the initial portion upfront, resulting in nine tranches vesting gradually).
A portion of his grant was contingent on performance, with shares granted only if Apple outperformed 2/3 of the S&P 500.
Tim successfully met all performance milestones, culminating in his receipt of the ninth grant, totaling approximately 560,000 shares, in August 2020.
Roughly half of these shares were earmarked to cover an estimated tax liability based on their August 2020 share price of $450 (pre-stock split), rendering the 280,000 shares he received valued at $126 million.
In addition to the 560,000 shares granted in August 2020, Tim already possessed 847,969 fully-vested shares of Apple.
In February 2020, when Apple shares traded at $320, this stake was valued around $280 million. By August 2020, when Apple’s stock surged to $450 per share, the same stake surged to $380 million.
Tim ranks as the company’s second-largest individual shareholder, holding approximately 0.02% of the company.
The largest individual shareholder is Board Chairman Arthur Levinson, who owns 1.1 million shares, having served on the Board since 2000. Following Levinson is Senior VP of Software Engineering Craig Federighi, who holds 412,000 shares as of the latest records.
In August 2021, Tim received the final installment of the original compensation plan, totaling $750 million. This payout involved selling over five million shares in Apple, marking Cook’s completion of ten years in his role as CEO.
Among Apple insiders, the individual with the largest shareholding after Cook is Arthur Levinson, chair of the company’s board of directors, who possessed roughly 0.028% (approximately 4.43 million shares) of the company’s stock as of 2024.
Tim Cook Annual Earnings
In 2022, the compensation target approved by shareholders for Cook amounted to $84 million. His base salary stood at $3 million, supplemented by company equity valued at $83 million, alongside other forms of compensation, resulting in a total package of approximately $99 million for the year.
However, in 2023, the company’s compensation committee, responding to the concerns of some of Apple’s major institutional shareholders, reduced Cook’s compensation target to $49 million, following a shareholder vote where only 64% approved his proposed package.
This adjustment signifies a pay cut of over 40%, predominantly affecting Cook’s stock awards, while his base salary remains unchanged at $3 million. Apple has stated that Cook endorsed this modification to his compensation.
Tim Cook Legacy at Apple
It’s difficult to overstate Tim Cook’s impact on Apple’s business throughout his tenure. While Steve Jobs is often hailed as the “creative genius” behind the brand’s most successful product lines, Cook’s leadership, particularly in operational matters, has been instrumental in propelling Apple to its status as the most valuable company globally and one of the most esteemed brands in the technology sector.
During his stewardship, profits and revenues soared, more than doubling in less than a decade. Apple achieved the historic milestone of surpassing $1 trillion in market capitalization, a feat accomplished under Cook’s guidance.
Tim Charity Activities
An SEC filing disclosed that Cook made a $2 million donation to an undisclosed charity shortly after Christmas in 2019.
In August 2018, he contributed nearly $5 million to another unnamed charitable organization. Among the known recipients of his previous donations are the Robert F. Kennedy Center for Justice and Human Rights and the Human Rights Campaign.
As CEO of Apple, Cook has also announced public donations to causes such as the Amazon rainforest fires and the California housing crisis. In response to these issues, the company committed $2.5 billion.
It’s worth noting that Tim Cook has embraced the Giving Pledge, publicly declaring his intention to donate the majority of his wealth before his passing.
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