Al Gore, Apple's board approved CEO's huge compensation

Former vice president Al Gore and Apple's CEO Tim Cook.

By Alfredo Santana

Apple’s CEO Timothy Cook pocketed more than $400 million from 2010 to 2012, mostly by grabbing stock shares awarded by the company’s four non-employee directors of the compensation committee, one of whom is former vice president Al Gore.

Cook, who was promoted to his current job in 2011, received one million shares titled Reserved Stock Units, or RSUs, as part of his compensation package. Half of the stock will vest on August 2016 and the rest on 2021. 

Between 2010 and 2012, CFO Peter Oppenheimer clinched nearly $100 million in a compensation package mixed with stock valued at more than $92 million, and salaries that crept up from $700,014 in each 2010 and 2011 to $805,400 in 2012.  

As of Sept. 29, 2012, Cook’s number of nonvested shares were estimated at $750 million, while Oppenheimer’s had a wealth in stock valued at $166.8 million.

Robert Mansfield, vice president of technologies, made $85,540,637 last year, but his base salary was $805,400. Bruce Sewell, who is the secretary and Apple’s chief attorney, grabbed a total of $68,989,812 in 2012.

Jeffrey Williams, vice president of operations and the last of Apple’s five executive officers, pocketed $68,691,612 last year in a combination of stock, base salary and aggregated incentives.

The compensation committee drafted a disability or death clause to speed shares’ vesting for the executive team. If Cook became disabled, or died before the vesting dates, he or his beneficiaries could cash his stock for $108,648,056. If Oppenheimer ran the same fate, he or his family have the option to trade stock internally valued at $57,661,888.

Millard S. Drexler, Andrea Jung and William Campbell voted alongside Gore to approve Cook’s compensation package. Each earns $50,000 a year as retainer, plus stock and additional awards.

In documents filed with the federal government, Apple reported that Gore received last year $201,894 worth of stock, matching Jung, Drexler and Campbell’s compensation. Gore’s income at Apple totaled $257,200.

A summary of the company’s executive program states the goal is “to attract, motivate and retain a talented, entrepreneurial and creative team of executives” to lead the technology behemoth into competitive markets.

Apple’s stock has recently spiraled down in the heels of lower sales estimated for its IPhones in China after Cook announced the market for consumers reached a saturation point. The company also posted its first income decline in 13 years.Yesterday, shares of Apple registered a drop of 1.15%, and closed at $93.74.

Gore joined Apple’s board of directors in 2003.  Apple is based in Cupertino, CA.