Apple boss Tim Cook in line for $500m windfall if he meets his six-year target

Apple boss Tim Cook is in line to receive half a billion dollars’ worth of stock if he remains as chief executive and hits targets over the next six years. He received $338m in time-based awards and $197m in performance-related stock when he took over from Steve Jobs in 2011. Apple’s share price hit an all-time high in November last year, valuing his incentive package at $535m. For the 54-year-old to receive the sum, he must stay in the role until 2021 and keep Apple’s shares at or above their current levels. Other performance criteria must also be met.

The company has traditionally believed that long-term equity awards in the form of (restricted stock units) are the most effective way to attract and retain a talented executive team and to align executives’ interests with those of shareholders.

2014 Apple pay report

The report also shows that Mr Cook received a 43% pay rise in his basic salary from $1.4m to $2m in February last year. His total compensation package doubled last year to $9.2m - his first pay increase since November 2011. The package included almost $700,000 paid towards his security expenses, and $56,923 for unused holiday. Angela Ahrendts, poached from Burberry last May, was the world’s highest-paid executive last year, earning $73m.

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