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 Cook took home $4.25 million, including a base salary of $1.4
million and a performance bonus of $2.8 million, roughly on par with
2012, the company said in a preliminary proxy statement on Friday.
But he gave up about 7,100 shares tied to an annual
performance-dependent award, based on shareholder returns from
August 24 of 2012 to August 25, 2013. Apple's stock lost a quarter
of its value over that one-year period.
The company also advised shareholders to vote down a resolution by
activist investor Carl Icahn, who proposed the iPhone maker buy back
$50 billion worth of shares in fiscal 2014. It was the first time
the company had publicly voiced its response to Icahn's demands.
Apple argued on Friday it has already returned $43 billion in
dividends and share repurchases over the first six months of its
roughly $100 billion capital return program.
The "dynamic competitive landscape and the company's rapid pace of
innovation require unprecedented investment, flexibility and access
to resources," Apple said in advising shareholders to reject Icahn's
proposal.
Known for decades of strong-arm tactics, including proxy fights,
Icahn has repeatedly made it clear that his proposal is not a sign
that he stands against Apple's management. The billionaire has
discussed the issue with Cook in past months, arguing via tweets
that a buyback of as much as $150 billion is within the company's
means and would prop up its stock.
STRAIN
Since taking over from the late Steve Jobs, Cook has steered Apple
in a more investor-friendly direction, including the establishment
of one of the industry's biggest capital return programs.
Apple's board in 2012 granted Cook an award of one million
restricted stock units (RSUs) — one of the largest pay packages for
an executive in a decade, intended to signal its confidence in Cook
in the wake of the late Steve Jobs.
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The award vests annually, but part of the grant depends on
shareholder returns versus a basket of Apple's corporate peers,
including Cisco Systems Inc and Google Inc.
But Apple has come under increasing strain from rivals like Samsung
Electronics and Huawei in key markets, while Amazon.com Inc and
other manufacturers are using Google's Android software to launch
competing tablets.
Apple's profit and margins slid in the September quarter despite
selling 33.8 million iPhones. Sources have said demand for the $100
cheaper, brightly hued iPhone 5C has severely lagged sales for the
top-tier 5S, spurring concerns about the iPhone's market positioning
and its ability to compete with a growing profusion of lower-cost
rivals.
This month, it finally secured a deal with China Mobile after
protracted negotiations, a deal that should enlarge its footprint in
the world's largest telecoms market.
(Reporting by Edwin Chan; editing by Tim Dobbyn)
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