Tim Cook is an American business executive, and industrial engineer who in 2011 replaced Steve Jobs as the CEO of Apple Inc.— the world’s most valuable company and the most profitable business in America. For salary/bonus Tim Cook earns 8 figures annually, although the figures fluctuate due to Apple’s adherence to “pay-for-performance”. For instance, in 2015 he earned $10.3 million but in 2016 he received a 15% cut to $8.5 million. because the company couldn’t meet its annual sales target. However, those figures are a huge improvement from the $900,000 he first earned as Apple’s CEO in 2011, meaning that Cook has an impressive track record.
Additionally, Apple’s Proxy statement as of 2017 reveals that Cook has an average of 952, 000 shares that vest every year. As most of his wealth come from stock options, Cook’s net worth/monetary value fluctuate with vagaries of the stock market.
However, some time in January 2017, Apple’s share traded at $117 putting the value of his annual vested stock at $113 million. Also, Cook has over 3 million unvested shares that would be fully vested by 2021. Per Forbes, Cook has earned $500 million from stock, salary and perks between 2011 and 2016. Thus, we estimate his 2017 net worth between $400 and $600 million. And should Apple’s share price rise, Cook could well become a billionaire by 2021, when all of his awarded shares will be due to vest, but the altruistic Cook revealed in 2015 that all of that would be channeled towards charitable causes.
Tim Cook Net Worth: How He Began
Timothy Donald Cook was born on November 1, 1960 in Mobile, Alabama. Unlike other wealthy tech guys who are famed for being college dropouts, Cook actually made it to the end of college and beyond. He earned a B.SC in industrial engineering from the Auburn University in 1982 and later an MBA from Duke University’s Fuqua School of Business in 1988.
Upon graduation, he landed a job at IBM where he rapidly rose up the ranks to helm the North American fulfillment. Following a successful 12 year stint, Cook, in 1994 was hired by Intelligent Electronics as the Chief Operating Officer of the computer reseller division. Three years later, he became the vice president for corporate materials at Compaq where he managed the product inventory for the next 6 months.
Tim Cook Net Worth: Apple Career
Cook in 1998 terminated his VP job at Compaq to accept Steve Jobs’ offer to serve at Apple as the Senior Vice President for worldwide operations. Cook’s decision was a bold one to say the least as he had to overcome discouraging words from many who at the time speculated that Apple was on the verge of collapse as it recorded declining profits.
Fortunately, Cook proved to have the quite the Midas touch on Apple. His contributions including leading the Macintosh division and developing reseller/supplier relationship strategies helped to restore Apple’s glory. To achieve the later, Cook shut down warehouses and factories responsible for stocking and manufacturing Apple’s product parts and instead contracted the job to other companies. By so doing, Apple was able to reduce stockpile inventory, reduce production cost, and eventually record profits.
By the end of the fiscal year 1998, Apple began to record huge profits, an extraordinary improvement for a company that had reported $1 million in losses in the previous fiscal year. Since then, Apple has been winning at varying degrees.
Cook’s extraordinary contributions were rewarded in 2007 with a promotion to Chief Operating Officer and a $500,000 annual paycheck. At the peak of Jobs’ ailment in 2011, Cook was appointed to replace him as the CEO and two months later in October 2011 Jobs passed. His new job came with a starting salary of $900,000 and 1 million restricted stock options valued at $378 million. In 2014 $145 million of the said option had vested.
As CEO of Apple, Cook has outperformed expectations. Under his stewardship, Apple became the world’s most valuable company in 2012, trading a share at $662. This was thanks hugely to the buzz that surrounded the launch of the new iPhone 5. The company has since used the strategy of product innovation to up its share price. Since then, Apple has launched the Apple Watch, Apple TV, iPhone 6. However, the launch of its iPhone 7 without the headphone jack was met by mixed reviews.
Tim in 2014 lead the largest acquisition in Apple’s history— the $3 billion purchase of Dr Dre‘s Beats Music and Beats Electronics. However, many labelled it as an “overpaid” acquisition.
Cook’s career as CEO hasn’t been without its fair share of woes. He has been rated poorly in the area of hiring. An example was when John Browett, who was hired as Senior VP of retail was fired just 6 months later. He made away with a 100,000 share stock grant valued at $60 million.
Secondly, shareholder returns has been poor starting from 2015. The share price decline was exacerbated by the EU’s decision that Apple should pay $14.5 billion in back taxes to Ireland after it was discovered that the phone-maker’s operations in the country was benefiting from “sweetheart deals”. Hopefully, Tim Cook can come up with another innovation that would send Apple’s share price over the roof and in turn earn the billionaire status.
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