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Apple's CEO Takes 99 Percent Pay Cut

ABC News
Apple's CEO Takes 99 Percent Pay Cut
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Apple's CEO Takes 99 Percent Pay Cut (ABC News)

The world's most valuable company, Apple Inc., gave CEO Tim Cook a 99 percent pay cut in 2012, according to documents filed with US securities regulators.

The CEO who has been at the helm of the Cupertino-based company since founder Steve Jobs died in Oct. 2011, saw his compensation decline because he got no stock award this year. However, he did get a 51 percent increase in salary and bonus.

According to documents filed to the Securities Exchange Commission Thursday, Cook earned a salary of $1.36 million and received a cash bonus of $2.8 million, making his compensation for the year $4.2 million.

Compensation for Cook is down after the CEO was awarded one of the highest compensation packages on record in the prior year. In 2011, Cook received $376.2 million in stock, which boosted his pay package to $378 million. According to the Associated Press, that stock owned by Cook is now worth $510 million. Under the terms of the stock grant, half the shares will vest in 2016 and the rest in 2021 if he stays with the company.

It's been a roller coaster ride for Apple and its shares, which hit an all-time high of $705 on Sept. 21 but have since slid to $513. For the year, though, the shares are up 27 percent.

In July, Apple reported lower than expected third quarter revenue of $35 billion, while analysts had expected $37 billion. The company reported higher profit of $8.8 billion for the third quarter, up from $7.3 billion the previous year.

Earlier this year, Cook acknowledged a misstep by the company in its panned Apple Maps, and issued an apology to its customers for the frustrations. In December, Cook told Bloomberg Businessweek about plans to manufacture Mac computers in the United States.

"Next year we are going to bring some production to the U.S. on the Mac. We've been working on this for a long time, and we were getting closer to it. It will happen in 2013," Cook said in an interview with Bloomberg Businessweek.

Despite the move to bring Apple to America, the company has seen its price targets slashed by some analysts who worry that the market for iPhones and iPads is becoming saturated.

According to the San Francisco Chronicle, "at least five analysts have cut their price targets for Apple since Dec. 16, with some saying Apple's purchases from suppliers indicate iPhone and iPad sales may not meet projections."

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