Technology

Tim Cook Must Now Fly Private Jet For “Security” Reasons: Apple Inc.

Apple Inc. (NASDAQ:AAPL) CEO Tim Cook should now fly solo, i.e., on private aircraft, according to the rules set in place by the board of directors at the company. Cook must use an Apple private jet whenever he travels, whether it is for work or pleasure.

Apple CEO Tim Cook
Image by ValueWalk

Apple CEO Tim Cook must use private jet

In a new proxy statement on Thursday, Apple said, “This policy was implemented in 2017 in the interests of security and efficiency based on our global profile and the highly visible nature of Mr. Cook’s role as CEO.”

Apple shelled out $224,216 in incremental private security costs for Cook, including the hiring of personnel for his benefit, the proxy statement said.

Further, the proxy statement says that Cook will have to pay taxes anytime he uses an Apple private jet for personal travel as the cost will come under extra compensation. Apple notes that Cook added $93,109 in personal travel costs for the company, “based on hourly flight charges and other variable costs incurred by Apple for such use, including variable fuel charges, departure fees, and landing fees.”

Just like Cook, other Apple executives can also use the private jets when required. However, if they fly along with a spouse or other family members, the incremental cost has to be paid by them.

Apple’s proxy statement also included six proposals that will require the shareholders’ nod at the upcoming meeting in February, such as re-appointing Apple’s public accounting firm and re-electing board members. Then there are proposals regarding the proxy access amendments and the establishment of the Human Rights Committee.

Fat bonuses for executives

In fiscal 2017, Apple CEO Tim Cook raked in a salary of $3.06 million plus $9.33 million in bonuses and stock worth $89.2 million, taking the total compensation package to about $102 million, according to Bloomberg. Cook has promised to give away most of his fortune during his lifetime to philanthropy.

CFO Luca Maestri, retail VP Angela Ahrendts, hardware engineering VP Dan Riccio, hardware technologies VP Johny Srouji and former counsel Bruce Sewell received bonuses of $3.11 million for a total compensation of $24.2 million each.

The Cupertino, California-based company stated that higher bonuses were given this fiscal year as Apple performed better than the target set for net sales and operating income. Year-on-year sales growth was witnessed in all product categories in the fiscal fourth-quarter ended September 30, while revenue surged 12% to $52.6 billion. In comparison, both annual sales and profits fell for the first time in 15 years in the 2016 financial year.

A new report from the research firm Counterpoint suggests that Apple profit share dropped 30% year on year due to the increased mix of previous generation iPhones in the third-quarter. The average selling price of the iPhone was flat year on year, whereas shipments increased 3% year on year. Counterpoint expects Apple’s profit to surge in the fourth-quarter on the back of iPhone X sales, notes GizBot.

According to Counterpoint Research director Neil Shah, “Apple continued to command lion share of mobile handset industry profits capturing almost 60 percent share. However, this is down from 86 percent share in the same quarter last year when Samsung had to gulp up a loss due to the Galaxy Note 7 debacle.”

Like Us On Facebook - For Business And General News: ValueWalk - For Tech And Science News: ValueWalk Tech - For Tech Insights, Technical Questions and Queries: Follow Our COO, Sheeraz Raza.