Apple CEO Tim Cook's compensation totaled less than $4.2m in 2012, down from $378m last year
Consumer electronics giant Apple today filed documents with the SEC in preparation for its annual shareholder meeting, which will be held at the company's HQ on Wednesday, February 27, 2013.
Context & Ripple Effects
Cook's Apple pay had already drawn scrutiny: a January analysis questioned how the reported 2011 $378 million figure should be interpreted, while his earlier performance-related bonus and stock award underscored the role of equity in executive-pay reporting. Apple's SEC filing puts a sharply lower 2012 total before shareholders ahead of the February 2013 annual meeting.
First-order effects
- Apple shareholders receive the formal 2012 compensation disclosure ahead of the annual meeting, with Cook's reported total below $4.2 million versus the prior year's headline figure.
Second-order effects
- Apple's board and shareholders must evaluate Cook's pay against the earlier $378 million number that prior coverage said was not straightforward earnings, shifting attention from a single annual total to its underlying compensation treatment.
Third-order effects
- SEC proxy disclosures are becoming a focal point for shareholder oversight of how large equity and performance awards are presented in executive pay figures.
The trend: Executive-pay scrutiny is moving toward closer reading of proxy disclosures, especially where stock awards make year-to-year totals difficult to compare.