The Wall Street Journal has published the annual salary rankings of CEOs leading the S&P 500 companies. Tim Cook only ranks 171st, despite Apple being the most capitalized company in the world.
Standard and Poor’s 500 (S&P 500) is an equity index that follows the trend of a basket made up of 500 US companies with the largest capitalization, with AAPL in first place thanks to its value of more than 2,000 billion dollars. In fact, the AAPL title accounts for nearly 6% of the total value of the top 500 US companies, but all of this is not reflected in CEO Tim Cook’s salary and performance-related pay.
The Wall Street Journal reports that the total package in favor of Tim Cook for 2020 was worth $ 14.76 million, a figure that is only slightly above the average of 13.4 million in the S&P 500. Furthermore, in a year in which the return to shareholders was 109%, Tim Cook’s compensation only increased by 28%. The highest paid in 2020 was Chad Richison, CEO of Paycom Software, with a total compensation package of over $ 200 million. In general, the highest salaries went to the CEOs of those companies that made the most money during the pandemic, such as software house Activision Blizzard and biotech giant Regeneron Pharmaceuticals. 500 provide limited shares or stock options, as boards of directors continue to prefer remuneration based on the performance of the shares and the company in general.
Then there are some founders and CEOs who choose not to receive any salary, or to receive it only in a symbolic way, since the value of their shares would make such remuneration irrelevant. For example, Twitter co-founder Jack Dorsey earned just $ 1.40, one cent for each character in the platform’s original limit. Tesla CEO Elon Musk was paid zero dollars, but raised options on the company’s stock worth $ 32 billion.