SAT URDAY, JANUARY 24, 2015
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MARKET Apple chief got twice his 2013 pay in 2014
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disclosed those type of costs for Cook.
Apple CEO’s
Compensation package Angela Ahrendts, hired last year to run Apple’s retail and online stores from Burberry Group Plc, where she was CEO, received a 2014 compensation package worth $73.4 million. That includes $70 million worth of stock. Her salary was $411,538.
package includes salary of $1.75 million and $6.7 million in non-
Luca Maestri, who was promoted to chief financial officer last year, received pay worth $14 million, including a $717,211 salary and $11.3 million in stock. Eddy Cue, head of Internet software and services, and Jeff Williams, head of operations, both received packages worth about $24 million, including salaries of $947,596 and stock worth $20 million. — Bloomberg News
equity incentive compensation for the fiscal year that ended in September, the Cupertino, California-based
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company said in a filing with the SEC Apple Chief Executive Officer Tim Cook. — Bloomberg file picture
SAN FRANCISCO: Apple Chief Executive Officer Tim Cook received compensation valued at $9.22 million last year, more than double his pay in 2013, as optimism for new products pushed the iPhone maker’s stock to a record. The company also said Mickey Drexler, CEO and chairman of J. Crew Group Inc., will retire from Apple’s board, where he’s served as a director since 1999. A replacement wasn’t named. Cook’s package includes salary of $1.75 million and $6.7 million in non-equity incentive compensation for the fiscal year that ended in September, the Cupertino, California-based company said Thursday in a filing with the US Securities and Exchange Commission. Cook was granted a pay package valued at $4.25 million in 2013. Major milestone Confidence in Apple has grown since Cook unveiled largerscreened iPhones in September and slimmer, faster iPad tablets in October. The company’s stock rose as high as $119.75 in November, sending its market
capitalisation to more than $700 billion, a milestone that no other U.S. company has reached. Cook also rolled out a mobile-payment system called Apple Pay, and this year will debut the company’s first smartwatch. Holiday sales Apple in October forecast that revenue in the final three months of 2014 would be $63.5 billion to $66.5 billion. That would exceed Apple’s holiday sales of $57.6 billion for the end of 2013. The company will report first-quarter earnings on Jan. 27. Apple finished fiscal 2014 posting full-year net income of $39.5 billion, an increase from $37 billion in 2013. Stock awards Cook, who joined Apple in 1998, was named CEO in August 2011 to succeed co-founder Steve Jobs, who died later that year. Cook received compensation in 2011 of $378 million, one of the biggest pay packages on record, boosted by $376.2 million in stock awards that he’ll get over a decade. The CEO’s compensation last year included security expenses of $699,133, the first time Apple
Running Apple leaves Cook with $56,923 of unused vacation time SAN FRANCISCO: The cost of Tim Cook skipping vacation last year: $56,923. That was the amount in holiday cash-out pay that the Apple CEO received last fiscal year, according to the company’s proxy filed with the US Securities and Exchange Commission (SEC) on Thursday. The number was included in Cook’s total $9.22 million compensation package for 2014. Cook’s vacation cash-out pay — a statistic that only shows up in a handful of company filings, according to data compiled by Bloomberg — is higher than in 2013, when he received $35,000 for unused days off. While Cook’s base salary rose 25 per cent last year to
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Sony to delay earnings report TOKYO: Sony is delaying the release of its final quarterly earnings, citing the disruption of accounting systems last year during a crippling cyber-attack on the company’s film studio. The attack, which US officials have blamed on North Korean hackers angered over the Seth Rogen spy-caper comedy “The Interview,” left the company unable to produce a full third-quarter re-
port by the expected on February 16 deadline, Sony said. The company instead sought permission to file its final earnings statement March 31, last day of the fiscal year. Sony still plans to update investors, analysts and the media on earnings and outlook “to the extent reasonably possible” for other units — including smartphones and TVs — while completing the
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accounting for Sony Pictures Entertainment. Critical financial and accounting applications at Sony Pictures Entertainment weren’t expected to be functional until early next month. The February 4 report would include October data for Sony Pictures and forecasts for November and December, a company spokesman said. - Bloomberg News
$1.75 million, the amount he received for cashing in vacation time rose 63 per cent. That suggests the CEO took even less days of rest and recreation in 2014 than in 2013. Apple didn’t disclose how many vacation days Cook was eligible for in the proxy and a spokeswoman at the company declined to comment on the CEO’s holiday habits.
“It’s fairly rare to see that in proxy statements today,” Frank Glassner, CEO of Veritas Executive Compensation Consultants, said in a phone interview from Hawaii. “Apple, along with other companies that are interested in being granular about best practices, doesn’t want to leave any stone unturned.” - Bloomberg News
– Bloomberg file picture
Google planning to become wireless operator in the US SAN FRANCISCO: Google’s plan to become a wireless service provider means stiffer competition for Verizon Communications and AT&T at a time when price pressure is already shrinking margins in the US mobile-phone industry. Google wants to offer service directly to consumers and will use Sprint’s wireless network, according to a person with knowledge of the matter. Google also plans to use T-Mobile’s network, according to technology blog The Information and the Wall Street Journal. Through the arrangements, Google would become what’s known as mobile virtual network operator, or MVNO. Google would pay for capacity on a carrier’s network and then sell the service to its own customers. The service could be up and running this year, according to another person. When it does start, here are the ripple effects for customers and the entire US mobile- phone industry: Sprint, T-Mobile For Sprint and T-Mobile, the arrangement provides extra revenue that can be used to upgrade networks and improve the quality of calls and data. That’s a boon not only for Google’s future customers, but also Sprint’s and T-Mobile’s existing user base. The deal could add up to as much as $1 billion in earnings before interest, taxes, depreciation and amortisation for Sprint and T-Mobile to split in 2018, according to Kevin Smithen, an analyst with Macquarie Securities USA Inc. Sprint may get the lion’s share of
that revenue because it has more excess capacity, Smithen wrote in a January 21 research note. Sprint is especially keen to partner with Google. Masayoshi Son, the president of SoftBank, which bought Sprint in 2013, was integral in facilitating the talks between Sprint and Google, according to a person with knowledge of the matter.
Verizon, AT&T Anything that helps call quality at Sprint and T-Mobile gives those companies extra ammunition for wooing customers from AT&T and Verizon, their larger competitors. Added profit would also give the companies more leeway to undercut AT&T and Verizon on price. “Like everything else, you have to watch your friends more closely than your enemies, so we will be watching Google closely,” Verizon Chief Financial Officer Fran Shammo said of Google’s reported plans.
Asked whether Google might also partner with Verizon, Shammo said only that the companies have many discussions. He declined to confirm whether the pair had discussed Google reselling Verizon’s wireless service. Google The company has been mum on its plans. Even so, Google could end up being the biggest winner. It could use MVNO arrangements to market and refine an array of tools, including search, maps and e-mail, delivered via Android, the most popular smartphone operating system globally. - Bloomberg News