Apple Inc CEO Tim Cook earned roughly the same in 2013 as in 2012, but
lost part of his performance-based stock award during a year in which
intense competition and margin pressure bludgeoned the iPhone maker's
Cook took home $4.25 million, including a base salary of $1.4
million and a performance bonus of $2.8 million, roughly on par with
2012, the company said in a preliminary proxy statement on Friday.
he gave up about 7,100 shares tied to an annual performance-dependent
award, based on shareholder returns from August 24 of 2012 to August 25,
2013. Apple's stock lost a quarter of its value over that one-year
The company also advised shareholders to vote down a
resolution by activist investor Carl Icahn, who proposed the iPhone
maker buy back $50 billion worth of shares in fiscal 2014. It was the
first time the company had publicly voiced its response to Icahn's
(Also see: Carl Icahn spoke again with Tim Cook on Apple stock buyback: Report)
Apple argued on Friday it has already returned $43
billion in dividends and share repurchases over the first six months of
its roughly $100 billion capital return program.
competitive landscape and the company's rapid pace of innovation require
unprecedented investment, flexibility and access to resources," Apple
said in advising shareholders to reject Icahn's proposal.
for decades of strong-arm tactics, including proxy fights, Icahn has
repeatedly made it clear that his proposal is not a sign that he stands
against Apple's management. The billionaire has discussed the issue with
Cook in past months, arguing via tweets that a buyback of as much as
$150 billion is within the company's means and would prop up its stock.
taking over from the late Steve Jobs, Cook has steered Apple in a more
investor-friendly direction, including the establishment of one of the
industry's biggest capital return programs.
Apple's board in 2012
granted Cook an award of one million restricted stock units (RSUs) - one
of the largest pay packages for an executive in a decade, intended to
signal its confidence in Cook in the wake of the late Steve Jobs.
award vests annually, but part of the grant depends on shareholder
returns versus a basket of Apple's corporate peers, including Cisco
Systems Inc and Google Inc.
But Apple has come under increasing
strain from rivals like Samsung Electronics and Huawei in key markets,
while Amazon and other manufacturers are using Google's Android
software to launch competing tablets.
Apple's profit and margins
slid in the September quarter despite selling 33.8 million iPhones.
Sources have said demand for the $100 cheaper, brightly hued iPhone 5c
has severely lagged sales for the top-tier iPhone 5s, spurring concerns about
the iPhone's market positioning and its ability to compete with a
growing profusion of lower-cost rivals.
This month, it finally
secured a deal with China Mobile after protracted negotiations, a deal
that should enlarge its footprint in the world's largest telecoms
© Thomson Reuters 2013