

Apple gives Tim Cook $376M stock award - jquery
http://news.cnet.com/8301-13579_3-57355608-37/apple-gives-tim-cook-$376-million-stock-award/

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mikepmalai
My thoughts on Cook's compensation and this article. (Background: I'm an
investment analyst w/ 6 years exp doing some extensive executive compensation
analysis)

1\. I really wish the author did a better job researching the comp plan before
writing the article. It wouldn't be hard to contact some compensation experts
to get their perspective of the plan...or at least do a better job reading the
proxy.

For instance: "This isn't the first time the board has showed its appreciation
to Cook for his performance during Jobs' absence. In August, a few days after
Cook assumed the role of CEO full time, the board gave Cook 1 million
restricted shares of Apple stock, half of which will be vested in five years
time."

It's pretty clear in the proxy the $376M compensation includes the August 1M
stock grant. This compensation amount should come as no surprise to anyone who
paid attention to Apple's August filings on the matter.

2\. When I first saw the grant in August, I said to myself, "This grant is
uniquely Apple". You just don't see grants of this size. (Frankly, most
companies couldn't get away with a grant of this size.) I'm completely
speculating but it looks like the 10 year grant is Apple's way of aligning
Cook with an internal 10 year plan. What that 10 year plan consists up is
anyone's guess.

3\. I don't expect to see another large stock grant to Tim Cook for the next
10 years.

4\. The compensation committee consisted of 2 CEOs and Al Gore. An interesting
mix indeed. Makes me think Steve Jobs may have played a role in getting Tim
Cook a 10 year grant. Apple now has Bill Campbell on the comp committee and he
has extensive experience with tech compensation.

5\. Overall $376M is a big number and it will interesting to see how it may or
may not affect the compensation practices of other tech companies as the
compensation consultants do their "benchmarking" studies.

