Apple’s 2025 Executive Compensation: A Detailed Breakdown
Apple Inc. has released its annual proxy statement, providing a comprehensive overview of executive compensation for the fiscal year 2025. This disclosure offers insights into the earnings of CEO Tim Cook and other key executives, reflecting the company’s financial performance and compensation strategies.
Tim Cook’s Compensation in 2025
Tim Cook, Apple’s Chief Executive Officer, received a total compensation of $74,294,811 in 2025, marking a slight decrease from the previous year. The breakdown of his earnings is as follows:
– Base Salary: $3,000,000
– Stock Awards: $57,535,293
– Non-Equity Incentive Plan Compensation: $12,000,000
– All Other Compensation: $1,759,518
The All Other Compensation category encompasses various benefits, including:
– 401(k) Contributions: $21,000
– Life Insurance Premiums: $2,964
– Vacation Cash-Out: $57,692
– Security Expenses: $887,870
– Personal Air Travel: $789,991
Notably, the Board mandates that Mr. Cook utilize private aircraft for all travel, both business and personal, to ensure security and efficiency.
Compensation of Other Key Executives
The proxy statement also details the compensation of other senior executives:
– Kevan Parekh, Chief Financial Officer:
– Base Salary: $891,519
– Stock Awards: $18,433,135
– Non-Equity Incentive Plan Compensation: $3,120,317
– All Other Compensation: $22,338
– Total Compensation: $22,467,309
– Kate Adams, General Counsel:
– Base Salary: $1,000,000
– Stock Awards: $22,009,766
– Non-Equity Incentive Plan Compensation: $4,000,000
– All Other Compensation: $22,482
– Total Compensation: $27,032,248
– Sabih Khan, Chief Operating Officer:
– Base Salary: $1,000,000
– Stock Awards: $22,009,766
– Non-Equity Incentive Plan Compensation: $4,000,000
– All Other Compensation: $21,905
– Total Compensation: $27,031,671
– Luca Maestri, Former Chief Financial Officer:
– Base Salary: $819,231
– Stock Awards: $13,003,031
– Non-Equity Incentive Plan Compensation: $1,638,462
– All Other Compensation: $22,204
– Total Compensation: $15,482,928
Contextualizing Executive Compensation
Executive compensation at Apple is structured to align with the company’s performance and shareholder interests. A significant portion of the compensation is performance-based, particularly through stock awards and non-equity incentive plans. This approach ensures that executives are incentivized to drive the company’s growth and profitability.
For instance, in 2023, Tim Cook’s target compensation was set at $49 million, a 40% reduction from the previous year’s target. However, his actual earnings for 2023 amounted to approximately $63.2 million, exceeding the target due to the company’s strong performance. This trend underscores the variable nature of executive compensation, which is closely tied to Apple’s financial achievements.
Philanthropic Commitments
Beyond his role at Apple, Tim Cook has expressed a commitment to philanthropy. In 2015, he announced plans to donate the majority of his wealth to charitable causes, aiming to develop a systematic approach to philanthropy rather than making sporadic donations. This pledge reflects a broader trend among high-profile executives who seek to leverage their wealth for social good.
Conclusion
Apple’s disclosure of executive compensation provides transparency into the company’s remuneration practices and highlights the alignment between executive earnings and corporate performance. The detailed breakdown of compensation for Tim Cook and other senior executives illustrates the company’s commitment to rewarding leadership that drives Apple’s success.
