The $ 99 million bonus that Apple CEO Tim Cook won last year received backlash from investors. Investors, who thought that the bonus package lacked performance criteria, called for the package to be rejected.
The United States (US)-based governance consulting group Corporate Shareholder Services (ISS) said it had “significant concerns” over the size of the bonus, which stood at $14.8 million the previous year.
In a letter to shareholders by the ISS, it said there were “substantial concerns” over the “design and size” of the bonus package. “Half the bonus is lacking in performance criteria,” ISS said.
‘The bonus package included the use of private jets worth 712 thousand dollars’
According to the ISS, Cook’s salary was 1,447 times greater than the average Apple employee’s salary.
Cook’s bonus package included $630,600 personal security expenses and $712,500 personal use of the private jet.
The cost of benefits provided last year “significantly exceeded” benefits offered by similar companies, ISS said.
Cook, whose total fortune is stated to be more than $ 1.5 billion, received the bonus payment in the form of stocks, cash and other payments.
The BBC contacted Apple for the company’s comment on the matter.
Donates nearly $10 million worth of Apple stock
Tim Cook, 61, who often speaks publicly about his concerns about equality and human rights, said in 2015 that he would donate his entire fortune before he died.
Last year, information submitted to the US Securities and Exchange Commission (SEC) revealed that Cook donated approximately $10 million worth of Apple stock to charities.
The company behind the iPhone, iPad and MacBook was the first company in history to reach a market cap of $3 trillion before its market cap dropped to $2.8 trillion in January.
Shareholder returns have increased more than 1,000 percent since Tim Cook took over as CEO in 2011.
Apple will hold its annual meeting for shareholders in the first week of March. Shareholders’ votes are advisory only; Bonus packages are decided by Apple’s board of directors.
At last year’s meeting, 95 percent of the shareholder votes supported Apple’s executive bonus program.
Investor revolt
Companies in the US and UK face stronger shareholder opposition to bonuses and compensation.
General Electric, IBM and Starbucks failed to receive majority shareholder support on executive salaries in 2021. US oil companies ExxonMobil and Chevron also faced resistance from climate activist investors last year.
Investors in wealth manager Blackrock, Exxon’s second-largest shareholder, voted against executive salary offers in America more than doubled in early 2021 compared to 2020.
In 2021, the number of companies listed on the London Stock Exchange’s stock index FTSE 100 faced shareholder revolt more than double that in 2020. In 2021, executive pay was condemned as many employees faced additional financial difficulties during the pandemic.
In the US, the Biden government has called for higher taxes on billionaires and large corporations to support a massive social spending package. The proposal envisions raising approximately $16 billion by limiting deductions for executive compensation.
The tax hike plan includes federally funded paid family leave, expanded education budgets, and allowances for climate change.