Apple defeats lawsuit claiming it overpaid CEO Tim Cook, other execs

Apple CEO Tim Cook
A U.S. federal judge on Wednesday dismissed a lawsuit accusing Apple of overpaying Chief Executive Tim Cook and other top executives by tens of millions of dollars by miscalculating the value of performance-based stock awards.
Jonathan Stempel for Reuters:
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U.S. District Judge Jennifer Rochon in Manhattan said the iPhone maker 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.
Rochon also found no proof that Apple’s board of directors acted improperly in awarding pay, and said the plaintiff, a pension fund affiliated with the International Brotherhood of Teamsters, did not give the board enough time to consider its objections before suing.
The plaintiff said Apple in 2021 and 2022 awarded a respective $92.7 million and $94 million of performance-based restricted stock units to Cook and four other executives, though its compensation committee intended to award just $77.5 million each year.
Cook’s compensation, opens new tab totaled about $99 million in both 2021 and 2022, including more than $82 million of stock awards each year, Apple proxy filings show.
His total pay declined to $63.2 million for 2023. The four other Apple executives were each awarded more than $26 million in each of the three years.

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MacDailyNews Take: Sad trombone for the International Brotherhood of Teamsters.
And,obviously, Tim Cook is overpaid. He, like most CEOs (especially non-founders), is paid more to stay and provide continuity than for anything he actually does.
Yes, executive compensation is out of whack. Tim Cook is vastly overpaid for what he does. This is because he holds a rare skillset and it benefits the shareholders to have continuity in the CEO position. Basically, Apple overpays Tim Cook in order to have a long-term CEO which provides confidence to the market. A succession of different CEOs jumping from company to company every other year seeking higher salaries would be a negative and justifies Cook’s overpayment. Cook is paid to stay more than for what he actually does. This is why he has vesting targets set years into the future. If he stays, providing continuity, he benefits and so does the company’s stock price. — MacDailyNews, February 18, 2022
See also: Apple CEO Tim Cook among the most overpaid CEOs, study finds – February 17, 2023
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
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