Tag Archives: tim cook

Apple files SEC Report, detailing executive team income for 2014

On January 22, Apple filed a report to the Securities and Exchange Commission (SEC) in which it detailed the monetary and equity compensations that have been paid to the top ranking company executives. According to the report, which is available for online viewing here, Tim Cook took home $9.2 million which is twice as much as last year. While the basic salary of Apple’s CEO was $1.75 million, he was also awarded a non-equity incentive compensation of $7.45 million.

Peter Oppenheimer, the company’s former Senior Vice President and Chief Financial Officer, had a base salary of a little under a million and $3.4 million in incentives for a total of $4.5 million. His successor, Luca Maestri, started off with a base salary of $711.211, an incentive package of $1.6 million and $11.3 million in Apple stock. This made his total income for the year a little over $14 million.

Often seen on the keynote stage, Eddie Cue was awarded a total of $24.4 million. With a base salary just shy of one million, Apple’s Senior Vice President of Internet Software and Services was given an additional $3.4 million in non-equity incentives as well as $20 million in stock. The Senior Vice President of Operations, Jeff Williams, saw a very similar reward for his work – a total of $24.4 million. Starting off with a base salary just under one million, he was given a non-equity incentive compensation of $3.4 million as well as $20 million in stock.

Source: SEC

The newest addition to company’s executive team, Angela Ahrendts started her career at Apple with a base salary of $411.538, a $500.000 bonus, a non-equity incentive plan compensation of $1.6 million and a whopping $70 million in Apple stock. Leaving her old position as the CEO of the luxury clothing company Burberry, Ms Ahrendts joined the Cupertino team in May of last year as the Senior Vice President of Retail and Online Stores, becoming the first female in Apple’s top ranks and making $73.3 million in the process.

If you haven’t paid (pardon the pun) much attention to the earnings of Apple’s top executives, you may be surprised to find out that Tim Cook, the CEO, isn’t the one getting the most money this year. In fact, he’s fifth on the list. And to make things even more bizarre, the newcomer Ms Ahrendts made eight times more. There is, of course, a perfectly reasonable explanation for the difference in numbers: whenever a new employee starts his or her contract, they are given restricted stock units (RSUs). These are stocks that become unlocked over time as the contract of the person progresses. For example, in previous CES filings we can see that Tim Cook was awarded an astonishing $376 million in stocks alone when he was named CEO back in 2011.

That explains compensations of Angela Ahrendts and Luca Maestri, but what about Jeff Williams and Eddie Cue? They both received $20 million in stock despite being with the company for a while. It comes down to talent retention. As observed by John Gruber of Daring Fireball and Guy English, since the release of the iPhone and iPad, many very talented people have left Apple in search of the next big thing. In that sense, it is perfectly understandable why Apple would attempt to retain its most talented employees by giving them more money and stocks, making them literally invested in the company.

Tim Cook urges companies to share their carbon footprint

Apple’s CEO Tim Cook is an innovative voice that is quickly listened to by many when he speaks. So, when Tim Cook spoke at the UN Climate summit in NYC admonishing companies to make a larger gesture and show the environmental impact their products have, many of these companies were listening. Cook mentioned that, “the time for inaction had passed”.

Cook has called on these companies to be more transparent with their customers by sharing with them the cost of their company’s sustainability efforts. This will in turn, help customers make more informed decisions about the companies they purchase their technology from, and chose the ones that have more of a global perspective on climate and the effects their products have on the environment. There was a time when a conservative investor in Apple suggested this same thing to Cook, and Cook responded angrily. Now, he’s embracing this same transparency.

Cook wants Apple to do their part to help the environment and address the concerns of the customers and the environment. He urges,

“Companies have to communicate to consumers about what they are selling, and they have to do it in a way that incorporates the whole of their footprint, not just one piece of it, that they are looking good.”

So, has Cook and Apple only talked the talk, and not walked the walk? It turns out that Apple has been a leader of the pack. In order to address these environmental concerns, Apple has released an environmental checklist that goes alongside every new product. This checklist cites that the new product is free of toxins, recyclable, and energy efficient. They have also set goals for their facilities and data centers that includes ensuring that they are powered with 100 percent renewables and solar power.

They’ve have many naysayers when it comes to their plan. However, Cook is not swayed by them. Cook says that this new sustainability plan is not only good for the environment, but also for economics.

Apple’s 2013 Carbon Footprint

Apple’s approach is to evaluate their entire footprint. They examine the amount of energy a product uses after it’s purchased, and the manufacturing and recycling of that product.  This takes a lot of time and effort, and also detail. Cook has said that he continues to hear from doubters who say that Apple must choose between the economy and the environment, because the commitment is far too great to do both. To that Cook says, “What we found, both are doable. If you innovate and set the bar high, you will find a way to do both.”

Cook believes that the consequences of ignoring climate change over a long period of time will be far too big to be ignored. And he wants his company, Apple, to be the frontrunner in the fight to bring more awareness to it. For him, it is not a choice of economics over environment. It’s a no brainer to create a plan and a way to mesh the two together. Apple has created a plan, especially on the heals of debuting its new iPhone 6 and iPhone 6 Plus, where they will minimize its greenhouse emission gases by the year 2020. A lofty goal it seems, but one that Cook sees as valuable for the sustainability and livelihood of the next generation.

Apple’s goal in climate change awareness is, “to be one of the pebbles in the pond that creates the ripple.” And we all know that whatever Apple does, they are bound to have a following.

Apple iPhone 6 will be introduced to the world on September 9th

According to a new report, Apple may be planning to release the highly anticipated iPhone 6 on September 9. The report comes from the technology site Re/code, which has a staunch reputation when it comes to getting Apple rumors right.

Others reputable sources are also confirming the date:

The iPhone 6 is expected to come in two new screen sizes, 4.7 inch and 5.5 inch. Some reports have speculated that the larger size will be delayed until later this year or early 2015 due to production issues.

In addition to bigger screens the device is expected to be totally redesigned. Over the last several months there have been multitudes of leaks pointing to a new mostly-aluminum design with rounded corners, similar to that of the current generation iPod Touch.

One of the most contested rumors points to the use of a sapphire display. The use of sapphire for the display would allow for a near indestructible front panel for the new smartphone. Apple’s devices are notoriously easy to break. The problem for Apple (and any other company that wants to use the material in their phone) is that it is difficult and expensive to produce en mass. This has led to some rumors that say that a sapphire screen will be included on the iPhone 6; some that say that it’ll only be included on the 5.5 inch version; and some that say that it won’t be included at all because of those production issues.

Internally, there isn’t much known about the iPhone 6 upgrades. Based on past releases, it is safe to assume that the iPhone 6 will see a faster processor. Battery life and capacity is another rumor that hasn’t been consistent over the last few months. Some reports point to the same size battery in the iPhone 6 as is already in the iPhone 5s. This points to slightly worse battery life due to the extra strain added by a larger screen. Yet other reports point to a significant upgrade for the iPhone 6 battery.

Other hardware rumors point towards the use of a new Wi-Fi chip (802.11ac), the possible inclusion of NFC for the first time, and the inclusion of wireless charging technology. Many of these rumors are considered extremely sketchy by those in-the-know.

Finally, it’s known (or at least safe to assume) that the device will launch with iOS 8, which is a significant upgrade from iOS 7. One of the features users are looking forward to the most is called extensions, which will allow app developers to send data and interfaces between third party apps. This also means that iOS will see third party keyboards and third party widgets for the first time.

When it comes to Apple rumors, it’s best to take everything with a grain of salt. No pundit or technology journalist knows exactly what Apple will announce when Tim Cook takes the stage on September 9.