Tim Cook Net Worth
Tim Cook Net Worth 2020 and Salary: Tim Cook is an American business executive who has a net worth of $1 billion. He is best known for being the CEO of Apple Inc. He was named CEO in 2011, having joined the company in 1998.
As CEO, Tim earns a base salary of $3.4 million and a bonus of $8 – $12 million. On top of salary and bonus, Tim is periodically granted large chunks of Apple options which vest over time. His vested shares are counted as income in a given year. So for example in 2019, on top of his salary and bonuses Tim earned $113.5 million worth of vested shares, bringing his total comp for the year to around $125 million. Between 2011, when he was named CEO, and 2020, Tim earned $963.5 million in total compensation from Apple. Outside of normal compensation, in an average year Tim benefits from roughly $500,000 worth of personal security expenses paid for by Apple. He is also required to fly privately for all personal and business travel. Those flight costs come to around $315,000 per year.
Apple's peak market cap under former CEO/founder Steve Jobs was $350 billion. When Tim was appointed CEO in 2011, many questioned how he could out-perform his genius predecessor. Fast forward to August 2020, Apple's market cap of nearly $2 trillion.
Tim has stated he plans to give most of his fortune away before he dies and has already donated tens of millions to various charities.
How Many Shares of Apple Does Tim Own? On the day Tim became CEO, he was given a large grant of options that vested in 9 annual increments. A chunk of his grant was performance-based. Those shares would be granted only if Apple out-performed 2/3 of the S&P 500. He has hit every single performance milestone. He received the ninth and largest grant, roughly 560,000 shares, in August 2020. Roughly half would be leftover after covering an estimated tax debt at their August 2020 price per share. At $450 per share, the remaining 280,000 shares would be worth $126 million.
Outside of that 560,000 chunk granted in August 2020, Tim already owns 847,969 fully-vested shares of Apple. In February 2020 when Apple shares were trading at $320, this chunk was worth around $280 million. In August 2020 when Apple hit $450 per share, that stake was worth $380 million.
Tim is the company's second-largest individual shareholder, his stake is roughly 0.02% of the company. The largest individual shareholder is Board Chairman Arthur Levinson who owns 1.1 million shares. Levinson has served on the Board since 2000. The third largest individual shareholder is Senior VP of Software Engineering, Craig Federighi, who has 412,000 shares as of this writing.
Other Compensation: Outside of his roughly $500 million in vested-shares that are still held by Tim, he has earned roughly $650 in other compensation.
Billionaire Status: Tim Cook officially became a billionaire in August 2020 after earning that ninth (and largest) performance stock grant of 560,000 shares.
Early Life: Timothy Donald Cook was born November 1, 1960 in Mobile, Alabama. His father (Donald) was a shipyard worker and his mother (Geraldine) worked at a pharmacy. He was raised in nearby Robertsdale. Cook attended Robertsdale High School and went on to earn a degree in Industrial Engineering from Auburn University in 1982. In 1988, Cook earned his Master of Business Administration from Fuqua School of Business at Duke University. He graduated in the top ten of his class and was awarded the title of a Fuqua scholar.
Early Career: Straight out of college, Tim Cook was hired by IBM where he moved up the ranks to become the computer corporation's North American Fulfillment Director, managing manufacturing and distribution functions for IBM's Personal Computer Company in both North America and Latin America. Following a 12-year career at IBM, Cook became a chief operating officer (Reseller Division) at Intelligent Electronics. He then served for six months as Vice President of Corporate Materials for Compaq, purchases and managing product inventory.
Apple: Cook's next job, in 1998, would be as Apple's Senior Vice President for worldwide operations, where he would be responsible for managing all sales and operations worldwide, including sales activities, and service and support. Tim joined Apple at a bleak time for the company, before it had developed the iMac, iPod, iPhone, or iPad. It was seeing declining profits and no profit growth. Many friends reportedly tried to dissuade Tim from joining the then-flailing company.
In an attempt to start turning a profit again for the company, Cook closed Apple factories and replaced them with contract manufacturers, and invested in long-term deals like an advance investment in flash memory. Cook's actions during this time generated huge profits, a shift from a recent net loss of $1 billion from their previous fiscal year, and has been credited with keeping Apple's costs under control. He was also the leader of the company's Macintosh division and developing reseller/supplier relationship strategies. He was promoted to lead operations in January 2007 and served as chief executive in 2009. During this time, Steve Jobs, founder and CEO of Apple, was on a health-related leave of absence. In January 2011, Jobs requested another leave of absence, and during this time Tim was responsible for running operations at Apple day-to-day.
Jobs eventually resigned as CEO, and, in August 2011, Cook was named Apple's new CEO. Steve Jobs passed away just two months later, in October 2011, after a battle with cancer. With the partnership they had created, they had rescued the company from a downward spiral and took it from less than $6 billion in revenue in 1998 to over $100 billion. In April 2012, Cook was included on Time Magazine's list of 100 Most Influential People in the World.
He was awarded one million shares in 2012 by Apple's board of directors. Cook said he planned to donate his entire stock fortune to charity. In May 2014, Apple announced the acquisition of Beats Music and Beats Electronics for $3 billion, its biggest acquisition yet. Apple unveiled the iPhone 6 in the summer of 2015. One year later, the Apple Watch was announced.
Other Ventures: Cook attended a private summit hosted by President Barack Obama in 2013 in regard to surveillance and the internet in the aftermath of the incident involving the National Security Agent and Edward Snowden. Following the terrorist attack in San Bernardino, CA in December 2015, the FBI solicited Apple to assist in unlocking an iPhone used by one of the attackers. The Department of Justice later ordered Apple to create custom firmware for iOS that would allow investigators to unlock any iPhone for gathering evidence. Cook denounced the demands in an open letter as a breach of privacy with that would have "chilling" consequences for public privacy and safety.
Cook was appointed chairman of the advisory board for Tsinghua University's economics school in October 2019. The length of his term will be three years. He has been on the board of directors for Nike, Inc. as well as the National Football Foundation. He owns $3.4 million worth of shares of Nike.
Personal Life: Cook is known for being a solitary, very private person. He was the first Chief Executive at a Fortune 500 company to identify publicly as gay and he did so in 2014 in an editorial for Bloomberg Business. In September 2015, he elaborated on The Late Show with Stephen Colbert on his decision to come out, "Where I valued my privacy significantly, I felt that I was valuing it too far above what I could do for other people, so I wanted to tell everyone my truth." He has stated that he hoped his openness would help inspire the young LGBTQ community not to live in the dark out of fear.
Cook is not married and has no children.
Cook donated to the presidential campaigns of Barack Obama and Hillary Clinton. At one point, Clinton considered Tim as a running mate in her 2016 campaign.
Real Estate: Despite being one of the highest-paid business executives in the world, Tim lives in a surprisingly modest 2,400 square-foot home in Palo Alto, California. He bought the house in 2010, the year before being named CEO, for $1.9 million.
Tim Cook Salary: When Tim first became CEO of Apple in 2011, his salary was $900,000 per year. Today his base salary is $3.4 million. As we mentioned previously, he typically earns a bonus of $8 – 12 million and can be awarded hundreds of millions worth of options.
Tim has announced that he plans to give the vast majority of his money away to charity when he dies.
Quote About Money:
"I like to be reminded of where I came from, and putting myself in modest surroundings helps me do that. Money is not a motivator for me."
|Net Worth:||$1 Billion|
|Date of Birth:||Nov 1, 1960 (59 years old)|
|Height:||6 ft 2 in (1.9 m)|
|Nationality:||United States of America|