Apple COO gets bonus that could be worth $22 million

Posted by Dennis Sellers Mar 13, 2010 at 12:02pm

Apple Chief Operating Officer Tim Cook earned a US$5 million cash bonus plus stock that could be worth nearly $17 million for the six months last year that he took the helm of the company. He ran things while CEO Steve Jobs was on a medical leave of absence.

In a filing with the U.S. Securities and Exchange Commission on Friday, Apple said its compensation committee had unanimously approved the bonus, which was recommended by CEO Steve Jobs. As reported by BusinessWeek, Jobs said Cook deserved the bonus “in recognition of his outstanding performance” during the period Cook ran the company while Jobs was on medical leave.

Along with the cash, Cook was awarded 75,000 restricted pieces of stock. Half of them vest in March next year and the other half the following year. At Friday’s closing price, the stock is worth nearly $17 million, notes BusinessWeek.

What’s more, some investors and analysts think it’s absolutely vital that Cook stays onboard to lead Apple if and when Jobs steps aside. Last year Piper Jaffray Gene Munster told the Wall Street Journal: “At this point, losing Tim Cook would be a bigger deal to investors than if Steve Jobs stepped aside. Just that thought makes my stomach tighten up.”

The Journal says other companies, such as Dell and Motorola, have tried to get Cook to jump ship. Stephen Mader, co-head of the CEO practice at recruiters Korn/Ferry International, told Macworld UK: “Now it’s clear that Tim Cook can run any technology-based company. He’s a more attractive CEO candidate both inside Apple and outside.”

Apple COO, Cook is responsible for all of the company’s worldwide sales and operations, including end-to-end management of Apple’s supply chain, sales activities, and service and support in all markets and countries. He also heads Apple’s Macintosh division and plays a key role in the continued development of strategic reseller and supplier relationships, ensuring flexibility in response to an increasingly demanding marketplace.

Before joining Apple, Cook was vice president of Corporate Materials for Compaq and was responsible for procuring and managing all of Compaq’s product inventory. Previous to his work at Compaq, Cook was the chief operating officer of the Reseller Division at Intelligent Electronics.

Cook also spent 12 years with IBM, most recently as director of North American Fulfillment where he led manufacturing and distribution functions for IBM’s Personal Computer Company in North and Latin America.

Cook earned an M.B.A. from Duke University, where he was a Fuqua Scholar, and a Bachelor of Science degree in Industrial Engineering from Auburn University.

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