Apple Defeats Lawsuit Claiming It Overpaid Tim Cook and Other Execs
Apple will not have to face an investor lawsuit accusing it of overpaying CEO Tim Cook and other top executives by tens of millions of dollars, after a federal judge on Wednesday dismissed the case (via Reuters).
The plaintiff, a pension fund affiliated with the International Brotherhood of Teamsters, said Apple in 2021 and 2022 awarded a respective $92.7 million and $94 million to Cook and four other executives by improperly calculating the value of performance-based stock awards. The plaintiff argued its compensation committee intended to award just $77.5 million each year.
The alleged error was attributed by the pension fund's lawyers to the committee's improper calculation of the restricted stock unit's "fair values" at the time of the grants, and said it misled shareholders who would be casting advisory votes on executive compensation, known as "say-on-pay."
U.S. District Judge Jennifer Rochon disagreed, however, saying Apple described its pay methods in detailed compensation tables in its 2023 proxy statement "precisely," as securities laws and U.S. Securities and Exchange Commission rules require.
The Manhattan judge also found no proof that Apple's board of directors acted improperly in awarding pay, and said the plaintiff did not give the board enough time to consider its objections before suing.
Apple proxy filings show Cook's compensation totaled about $99 million in both 2021 and 2022, including more than $82 million of stock awards each year. Cook's total pay declined to $63.2 million for 2023.
Popular Stories
Apple is expected to announce iOS 18 during its WWDC keynote on June 10, and new features have already been rumored for many apps, including Apple Music, Apple Maps, Calculator, Messages, Notes, Safari, and others. Below, we recap iOS 18 rumors on a per-app basis, based on reports from MacRumors, Bloomberg's Mark Gurman, and others: Apple Maps: At least two new Apple Maps features are...
In his Power On newsletter today, Bloomberg's Mark Gurman outlined some of the new products he expects Apple to announce at its "Let Loose" event on May 7. Subscribe to the MacRumors YouTube channel for more videos. First, Gurman now believes there is a "strong possibility" that the upcoming iPad Pro models will be equipped with Apple's next-generation M4 chip, rather than the M3 chip that...
Apple's upcoming iPad Pro models will feature "by far the best OLED tablet panels on the market," according to Display Supply Chain Consultants. Set to be announced on May 7, the OLED iPad Pro models will feature LTPO (a more power efficient form of OLED), a 120Hz ProMotion refresh rate, and a tandem stack and glass thinning that will bring "ultra-thin and light displays" that support high...
Bloomberg's Mark Gurman today said that iOS 18 will "overhaul" many of Apple's built-in apps, including Notes, Mail, Photos, and Fitness. Gurman did not reveal any specific new features planned for these apps. It was previously rumored that the Notes app will gain support for displaying more math equations, and a built-in option to record voice memos, but this is the first time we have...
Best Buy today has discounted Apple's M1 iPad Air (64GB Wi-Fi) to a new all-time low price of $399.99 in the Starlight color option, down from $599.99. Best Buy says this deal will last through the end of the day, and it's only available in one color at this record low price. Note: MacRumors is an affiliate partner with Best Buy. When you click a link and make a purchase, we may receive a...
Apple has announced it will be holding a special event on Tuesday, May 7 at 7 a.m. Pacific Time (10 a.m. Eastern Time), with a live stream to be available on Apple.com and on YouTube as usual. The event invitation has a tagline of "Let Loose" and shows an artistic render of an Apple Pencil, suggesting that iPads will be a focus of the event. Subscribe to the MacRumors YouTube channel for more ...
With iOS 17.5, Apple is adding a "Repair State" feature that is designed to allow an iPhone to be sent in for service without deactivating Find My and Activation Lock. The fourth iOS 17.5 beta that came out today adds a "Remove This Device" option for all devices in Find My, and using it with an iPhone puts that iPhone into the new Repair State. Right now, sending an iPhone to Apple to be...
Top Rated Comments
https://aflcio.org/paywatch/highest-paid-ceos
https://www.investopedia.com/the-world-s-10-most-profitable-companies-4694526
Apple’s stock price was less than $14/share when Tim Cook took over as CEO in August 2011 (and Steve Jobs died in October 2011). Today, it is over $180/share.
He has also pledged “to donate $800m fortune to charity before he dies”.
https://amp.theguardian.com/technology/2015/mar/26/tim-cook-apple-donate-800m-fortune-charity
How do you define too much money? Is that more than you make? Is it more than X times the median salary of company employees? Is it a percent of total revenue? Is it relative to other CEOs?