Apple gives Tim Cook $376M stock award

My thoughts on Cook's compensation and this article. (Background: I'm an investment analyst w/ 6 years exp doing some extensive executive compensation analysis)

1. I really wish the author did a better job researching the comp plan before writing the article. It wouldn't be hard to contact some compensation experts to get their perspective of the plan...or at least do a better job reading the proxy.

For instance: "This isn't the first time the board has showed its appreciation to Cook for his performance during Jobs' absence. In August, a few days after Cook assumed the role of CEO full time, the board gave Cook 1 million restricted shares of Apple stock, half of which will be vested in five years time."

It's pretty clear in the proxy the $376M compensation includes the August 1M stock grant. This compensation amount should come as no surprise to anyone who paid attention to Apple's August filings on the matter.

2. When I first saw the grant in August, I said to myself, "This grant is uniquely Apple". You just don't see grants of this size. (Frankly, most companies couldn't get away with a grant of this size.) I'm completely speculating but it looks like the 10 year grant is Apple's way of aligning Cook with an internal 10 year plan. What that 10 year plan consists up is anyone's guess.

3. I don't expect to see another large stock grant to Tim Cook for the next 10 years.

4. The compensation committee consisted of 2 CEOs and Al Gore. An interesting mix indeed. Makes me think Steve Jobs may have played a role in getting Tim Cook a 10 year grant. Apple now has Bill Campbell on the comp committee and he has extensive experience with tech compensation.

5. Overall $376M is a big number and it will interesting to see how it may or may not affect the compensation practices of other tech companies as the compensation consultants do their "benchmarking" studies.