Tim Cook became the CEO of Apple Inc (NASDAQ:AAPL) in 2011. First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Tim Cook’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Apple Inc has a market cap of US$918b, and is paying total annual CEO compensation of US$13m. That’s a notable increase of 46% on last year. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m.
That means Tim Cook receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Apple has changed over time.
Is Apple Inc Growing?
Apple Inc has increased its earnings per share (EPS) by an average of 8.3% a year, over the last three years It achieved revenue growth of 16% over the last year.
This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
Has Apple Inc Been A Good Investment?
Boasting a total shareholder return of 73% over three years, Apple Inc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
Remuneration for Tim Cook is close enough to the median pay for a CEO of a large company .
While the growth could be better, the shareholder returns are clearly good. So considering most shareholders would be happy, we’d say the CEO pay is appropriate.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.