While Apple Tim Cook’s salary has been $3 million since 2016, most of Tim Cook’s compensation is performance-based. For instance, in 2022, while the salary of Tim Cook was $3 million, he had total compensation of over $99 million, which comprised stock awards and other incentives and bonuses.
Indeed, most of the compensation is performance-based when it comes to CEOs of public, listed companies.
And it’s usually tied to the performance of the stock compared to the main stock index (and a few other benchmarks the company can set, such as the performance of the stock compared to identified comparable companies.
That’s how, with a base salary of $3 million, Tim Cook is nonetheless worth hundred of millions of dollars.
The same compensation structure is followed by other large tech companies.
However, if we look at performance-based compensation, Satya Nadella made most of his income in 2022 (96%) from performance-based compensation, whereas base compensation only represented 4% of the total earnings.
The same goes for Sundar Pichai, which between 2019-2021, made over $294 in performance-based compensations.
Of course, those can be vested at specific performance metrics, over the years.
- Tim Cook’s Compensation Structure:
- Tim Cook, Apple’s CEO, has had a base salary of $3 million since 2016.
- His total compensation is mainly performance-based, including stock awards and incentives.
- In 2022, his total compensation was over $99 million, with a base salary of $3 million.
- Most CEO compensation in public companies is tied to stock performance.
- Tim Cook’s Net Worth:
- Tim Cook’s primary source of wealth is his Apple stocks.
- As of 2023, he owned approximately 3.28 million Apple shares worth around $480 million.
- Over the years, he has sold portions of his Apple stocks, making him a billionaire.
- Microsoft CEO Compensation:
- Microsoft’s CEO, Satya Nadella, had a base salary of $2.5 million between 2020 and 2022.
- The majority of CEO compensation is performance-based, beyond the base salary.
- In 2022, only 4% of Nadella’s total compensation was base salary.
- Satya Nadella’s Net Worth:
- Nadella’s net worth primarily comes from Microsoft stock holdings.
- He owned around 763,518 Microsoft shares valued at $190 million in 2022.
- His total compensation in 2022 included stock awards and non-stock incentives, with a significant portion tied to performance-based metrics.
- Over the years, Nadella has sold substantial amounts of Microsoft stock, making him a centi-millionaire.
- Google CEO Compensation:
- Google’s CEO, Sundar Pichai, had a base salary of $2 million in 2022.
- Like other CEOs, a significant portion of his compensation is performance-based, including stock awards and bonuses.
- Sundar Pichai’s Net Worth:
- Sundar Pichai’s net worth is largely based on his Google stock holdings.
- Between 2019 and 2022, he received compensation totaling $294 million, including base salary, stock awards, and bonuses.
- Pichai’s net worth is estimated to be more than $500 million due to stock sales and market value appreciation.
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