Tim Cook Makes Shortlist for TIME's 2012 Person of the Year
TIME today unveiled its shortlist of people who are being considered for TIME's annual Person of the Year Award. Apple CEO Tim Cook is on the list, as well as Yahoo CEO Marissa Mayer.
The Person of the Year award is given to "a person, couple, group, idea, place, or machine" that has "for better or for worse done the most to influence the events of the year." TIME's editorial team decides the winner.
The two tech CEOs join notable figures like Malala Yousafzai, the young Pakistani activist who suffered a head wound after being shot by the Taliban, United States President Barack Obama, Egyptian president Mohamed Morsi, Bill and Hillary Clinton, and the three scientists behind the discovery of the Higgs Boson.
In 2011, Steve Jobs was posthumously nominated for TIME's Person of the Year by NBC Nightly News Anchor Brian Williams, but he did not win. He also did not make it to the final shortlist. This year, Cook has worked to bring some production of Apple products back to the United States, and to improve working conditions for factory employees. He also stepped up to accept responsibility for Apple's Maps failure and restructured Apple's management.
The Protestor, a group choice inspired by Mohamed Bouazizi, a Tunisian fruit vendor who famously set himself on fire in a public square, received the award in 2011, while Facebook founder Mark Zuckerberg won in 2010.
TIME's 2012 winner for Person of the Year will be announced tomorrow morning.
12-18-2012 05:41 PM
Time Magazine Profiles Tim Cook As Runner-Up For Person Of The Year
Yesterday we told you that TIME magazine had shortlisted Tim Cook for its prestigious Person of the Year award, but U.S. President Barack Obama ended up getting selected as this year’s winner. Since Cook is the runner-up, TIME has profiled the CEO with an interview and a look at his history with Apple.
While much of the content in TIME’s profile has already been covered in Businessweek’s extensive interview and NBC Rock Center’s segment, the article does offer a nice overview of how Cook has stepped out of Steve Jobs’s shadow to become the leader of the most valuable company on earth.
The profile touches on Cook’s personal schedule and showcases his incredible work ethic:
Cook does have a few things in common with Jobs. He’s a workaholic, and not of the recovering kind. He wakes up at 3:45 every morning (“Yes, every morning”), does e-mail for an hour, stealing a march on those lazy East Coasters three time zones ahead of him, then goes to the gym, then Starbucks (for more e-mail), then work. “The thing about it is, when you love what you do, you don’t really think of it as work. It’s what you do. And that’s the good fortune of where I find myself.”
Like Jobs, Cook never shows any doubt in public, either about himself or about Apple, not a scintilla, not for an instant. He rarely strays far from his core message about Apple: that it’s the best, most innovative company in the world, that consumers love it and that it is his privilege to work for it and for them. When speaking about his management style, Cook begins, “CEOs are all packages of strengths and …” He hesitates, looking for some way to reroute the sentence around the word weaknesses. Then he finds it: “and so forth.”
A good chunk of the article deals with Cook’s career in moving from a number of big tech companies, including IBM and Compaq, before coming to Apple. TIME then explains how Cook has made great strides to grow Apple in China and demonstrate greater transparency with labor practices in the supply chain.
His critics say Cook lacks a true technologist’s vision, but it would be more accurate to say that he has yet to show his hand. Apple finished 2012 with a triumphant record of innovation, but it was innovation with a small i, as in incremental. That’s good enough for an ordinary company, but it’s not what made Apple worth more than Exxon Mobil. The essence of Apple is the quantum leap, the unexpected sideways juke into a heretofore unnoticed and underexploited market — personal computers, digital music players, smart phones, tablet computers. Maybe the next stop is televisions; that’s certainly where the rumor mill is going. But the test for Cook will be to seek out a new category that’s vulnerable to disruption and disrupt the hell out of it.
Apple gives Tim Cook 51 percent salary increase
Apple CEO Tim Cook received compensation totaling $4.17 million in 2012, down 98.9 percent on last year—although his 2011 compensation of $378 million consisted mostly of a one-off stock grant, worth $376.2 million at the time.
Cook’s salary, on the other hand, rose 50.8 percent, to $1.36 million, and his additional incentive payments more than tripled, to $2.8 million, the company revealed in a filing to the U.S. Securities and Exchange Commission (SEC) on Thursday.
His predecessor, Steve Jobs, famously took an annual salary of just $1. He received no additional incentive payments, although Apple picked up the tab for his private jet, paying $1.1 million from 2008 through 2010.
Apple’s compensation committee considered that Jobs was amply compensated by the growth in value of Apple’s stock, of which he held around 5.5 million shares. Its grant of 1 million restricted stock units (RSUs) to Cook on Aug. 24, 2011 was an attempt to motivate him in a similar way. Half the shares will vest in 2016, five years after he became CEO, and the other half in 2021, assuming he is still with the company.
Jobs’ holding of Apple stock was dwarfed by his stake in Walt Disney Co., of which he owned around 7 percent as a result of his sale of animation studio Pixar to the company. That reportedly netted a 2011 dividend payment of $82.8 million for the trust fund to which he bequeathed his shares.
Overall, compensation by stock price has been good for Cook. His one-million-share holding is now worth around $515 million, up 36 percent over the last 16 months, based on Friday’s stock price.
That, though, is nowhere near the $705 high Apple shares hit on Sept. 21, the day the iPhone 5 went on sale. Since then, Cook has made a paper loss of $190 million.
The stock price decline was triggered, in part, by disappointment that the new iPhone did not exceed the numerous rumors about its capabilities, and also with dissatisfaction with the new mapping application that Apple included in iOS 6. Its poor performance prompted Cook to issue a rare public apology, and led to the departure of Apple software chief Scott Forstall, once seen as a contender for the role of CEO.
To get Apple’s stock back on an upward track, Cook will have to deliver more inspiring products than the iPad Mini—perhaps including an Apple TV. There are signs that Apple may be moving to extend its TV offering beyond the diminutive AppleTV set-top box and the sale of TV show episodes through iTunes. Earlier this month, Cook described TV as “an area of intense interest,” a stark contrast to his predecessor’s dismissal of it as a “hobby.”
Apple CEO Tim Cook makes second trip to China in 10 months
In his second visit to China in 10 months, Apple Chief Executive Tim Cook met with the country's head of industry and information technology to discuss the tech industry.
Cook's visit with Miao Wei of the Chinese government was revealed by the Ministry of Industry and Information Technology, according to Bloomberg. The two reportedly discussed Apple's business in China and the global communications market.
Cook was previously in China last March, when he visited a Foxconn factory that assembles iPhones. On that trip, he also met with Chinese Vice Premier Li Keqiang to discuss intellectual property issues, as well as potential cooperation with the Chinese government.
Last year, Cook's visit to China came as Apple was under fire for working conditions in its suppliers' factories. Critics contended that companies like Foxconn had employees work long overtime hours for inadequate pay.
In the last 10 months since Cook's previous visit to China, the conversation has changed considerably. Apple now offers monthly updates from audits of its suppliers, the company has pledged $100 million to produce an entire line of Macs in the U.S., and there has even been speculation that Apple has subsidized wage increases for workers at Foxconn.
Foxconn has faced criticism for years, as some have referred to the electronics maker as a "sweatshop" where employees work long hours for little pay. The company has worked to improve its image, and Apple has encouraged those changes with a series of audits, including new independent reviews from the Fair Labor Association.
Since Cook's previous visit last March, Apple has also nearly doubled its retail presence in China. When Cook last went to China, Apple had just six stores in the country, or one location per 216 million Chinese people. In comparison. the state of Pennsylvania has a total of eight stores for a population of 12.7 million people
Since then, new stores have opened in five more locations, including Chengdu and Hong Kong's Hysan Place and Festival Bay. There are now 11 Apple Stores in Greater China.
Apple ties CEO’s pay to company’s fortunes
Apple gave CEO Tim Cook a 55% salary increase for 2012 and awarded him a US$2.8 million bonus but said his overall compensation for the year was still down by 99 percent compared with 2011 levels.
In fact, Apple said, Cook’s pay is “significantly below the median” level of compensation for top executives at comparable companies.
But even taking into account Apple’s size and its high-revenue year, Cook’s pay was certainly adequate, said Don Lindner, executive compensation practice leader at WorldatWork, an association for human resources professionals. “The single biggest factor in executive pay is the size of the company, and Apple obviously is huge,” he said. “But Cook has not been in the job very long. It may take a period of years for him to be paid at the median.”
Cook’s 2011 package total was skewed, however, by a massive grant of 1 million Apple shares, worth US$376 million of the US$378 million total package. Those shares are now worth over US$532 million at today’s prices, but the shares vest in equal parts in 2016 and 2021, assuming Cook is still with the company.
“There was no competitive reason” for awarding more stock to Cook this year, said Bob Buford, a compensation consultant. “They’re already married to the guy for 10 years.”
Apple guidelines put in place after the death of Steve Jobs require the CEO to own shares of company stock with a value equal to 10 times the base salary. The idea is to keep the top executive at Apple, working for the long-term success of the company, by tying his fortunes at least in part to the company’s.
Jobs owned approximately 5.5 million shares of Apple stock at the end of 2011.
“Shareholders like to see that senior management has skin in the game,” Lindner said. That said, 10 times base salary is “very high,” he continued. Noting that the typical rate is five times base salary, he added, “Apple is making a big statement here.”
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