Apple's proxy statement reveals Tim Cook's pay and Carl Icahn's proposal

Apple's proxy statement reveals Tim Cook's pay and Carl Icahn's proposal
Apple filed its annual proxy statement with the SEC on Friday. Among the information revealed by the filing, Apple paid its CEO Tim Cook $4.25 million in salary and bonus for the fiscal year that ended September 28th. Cook did not receive any stock as compensation for the last two fiscal years. In August 2011, he was awarded 1 million restricted shares of Apple, then valued at $375 million, when he took over the CEO post from the late Steve Jobs. Those restricted shares now have a value of $563 million.

At the urging of the executive, Apple changed the vesting rules for the shares. Instead of them vesting based on longevity, for Cook to receive the entire award, Apple's shares must outperform two-thirds of the shares in the S&P 500 each year.

According to the proxy, at the annual stockholders' meeting on February 28th, investor Carl Icahn will submit a proposal that would ask the company to buy back $50 billion of its own shares by September 27, 2014. Icahn owns 3.9 million shares of Apple at last count, valued at $2.2 billion. Apple is recommending that shareholders turn down the proposal. While Apple says that it still is committed to returning cash to shareholders, it says that it needs to be flexible with access to its resources, according to a statement.

Another proposal would prevent Apple from issuing preferred stock without a shareholder vote. This would prevent the company from offering high-dividend preferred stock at the discretion of executives, without an approval from a majority of common stockholders. Apple says it wants to eliminate this "blank-check" authority to issue preferred shares because the preferred shares could be "misused" by the board to block a merger.

source: WSJ

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20 Comments

1. mr.techdude

Posts: 571; Member since: Nov 19, 2012

Woa, only 4.25 million.

3. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

That's a bargain in the CEO world.

11. apple4never

Posts: 1064; Member since: May 08, 2013

thats what i was thinking, only 4.25 well for a ceo thats like nothing and considering how much money apple makes. Who's getting all this money ?

15. a_merryman

Posts: 749; Member since: Dec 14, 2011

Tim Cook is, in stock options. Just like most CEOs.

2. androiphone20

Posts: 1654; Member since: Jul 10, 2013

What are icahns plans after the $50B buy back? Fire sale every stock he's got? I personally am upset that he would openly dictate business decisions that so obviously benefit himself over the company he has stock in. Greed is apparently his closest friend. Apple is supposed to spend another $50B for one persons benefit? Good idea. If you're not interested in a company succeeding over the long term, don't buy their stock and stay out of their business... actually, stay out of their business, period. Aren't you happy with the tons of money they made you? Or is it never enough - so you keep brazenly squeezing out every last dime at everyone else's expense.

4. Furbal unregistered

Yeap, I'm sure the board sees it that way as well. One reason why they hopefully wont do it...

5. androiphone20

Posts: 1654; Member since: Jul 10, 2013

+1, they're urigung people to vote no

7. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

First, Icahn isn't the only person who'd benefit. Second, who in the business world buys shares to stand behind a company? They put their money into a company to make more money. It's no different than what I'm told when I mention that I think a business move by Apple seems shady. Everyone says that they're there to make money, not to be a charity or an ethical paragon. So why should their shareholders be any different? Thses people believe in a company only to the point that it'll make them money, not to help the company in the future. Otherwise the stock market would be a lot different, full of idealists instead of hardcore capitalists. There are literally tons of movies and news reports on the greed at wall street's heart. Wolf of Wall Street, Boiler Room, Wall Street, even Trading Places just to name a few. While I agree that your outlook is how it should be, it's just not how it is for 99% of the people in the stock market.

20. meowcenary

Posts: 187; Member since: Apr 13, 2012

You gotta love corporate raiders, like Carl Icahn and what they do. Nice way of making money if you can convince the board to do what you say.

6. darkkjedii

Posts: 30875; Member since: Feb 05, 2011

Cook, loan a brother a few $$$.

8. PapaSmurf

Posts: 10457; Member since: May 14, 2012

And a few iPad Airs, Mini w/ R, MBP w/ R, iPhone 5S 64GB Champaign, and a new Mac Pro. :)

9. darkkjedii

Posts: 30875; Member since: Feb 05, 2011

Damn Smurf lol, a bit greedy aren't we lol. I'm seriously hoping the next Iphone includes a 128 gig option. That would be cool.

10. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Technically I can buy all of them now but I rather not. Looking forward to the iPhone 6. :)

12. darkkjedii

Posts: 30875; Member since: Feb 05, 2011

I'm hoping for a larger screen, 4 in. is only adequate now. Looking forward to getting used to a larger canvas on iOS. I skipped the note 3, so iphone/note 4 next year. I simply must have both.

13. PapaSmurf

Posts: 10457; Member since: May 14, 2012

4.7" iPhone with the A8 chip would be amazing. Note 4 too!

14. darkkjedii

Posts: 30875; Member since: Feb 05, 2011

Would be lovely. 3 gigs of ram too?

16. reckless562

Posts: 1153; Member since: Sep 09, 2013

f all that useless crap.... how bout making the damn mac books a TOUCH SCREEN already?? been watin on that since 2010...

18. Pancholo

Posts: 380; Member since: Feb 27, 2012

Keep waiting. That could require an overhaul of their current OSX, not even just in the UI department. Also, if Macbooks were to have touch screens, those would cannibalize iPad sales, or probably iPads would be looked as the "cheaper," more mobile alternative, even if those aren't full blown computers. Anything could happen, though - that'd be interesting. Still, people would get used to an iPad faster than a Mac. Sadly, iOS may also have more games than Macs, lol. Just kidding! ...Though I hope it's not true!

17. reckless562

Posts: 1153; Member since: Sep 09, 2013

waooohh f all that useless crap.... how bout making the damn mac books a TOUCH SCREEN already?? been watin on that since 2010...

19. sonisoe

Posts: 440; Member since: May 06, 2009

other ceos would get 10million+stocks...

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