Evaluation Report on Apple CEO Tim Cook's 2025 Compensation and Its Impact on Shareholder Value

Based on the above data and analysis, we now present a

:

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According to the annual proxy statement (DEF 14A) [1][2] filed by Apple Inc. with the U.S. Securities and Exchange Commission (SEC) on January 8, 2025, Tim Cook’s total compensation in 2025 was

, a slight 0.4% decrease from $74.6 million in 2024. The compensation structure is as follows:

Compensation Item	Amount (USD 10,000)	Proportion	YoY Change
Base Salary	300	4.0%	Flat (unchanged since 2016)
Stock Awards	5,750	77.4%	Flat
Performance Cash Bonus	1,200	16.2%	Flat
Other Compensation	176	2.4%	+17.3%
Total	7,430	100%	-0.4%

“Other Compensation” includes 401(k) retirement plan contributions, life insurance premiums, vacation cash-outs, security expenses, and private jet usage fees. For efficiency and security reasons, Apple requires Cook to use a private jet for both business and personal travel [1].

Apple has set Cook’s target compensation at

, unchanged from 2024, and positioned his target compensation at the . In its proxy statement, Apple clearly stated: “The equity incentives earned by Cook during his tenure as CEO are aligned with the growth, success, and significant shareholder value he has delivered under his leadership at Apple” [3].

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From August 2011 when Cook took over as CEO to the end of 2024, Apple’s cumulative total shareholder return (TSR) reached approximately

, significantly outperforming the S&P 500’s return (approximately 321%) over the same period [3][4]:

Indicator	Performance During Cook’s Tenure	Comparison Benchmark
Initial Market Cap at Tenure Start	Approx. $350 billion	-
Current Market Cap	Approx. $3.83 trillion	World’s Largest Company by Market Cap
Cumulative Total Shareholder Return	+1,908%	S&P 500 approx. +321%
Final Value of $10,000 Investment	Approx. $163,000	S&P 500 approx. $52,100
Annualized Return on Investment	~26%	~12%

If an investor had invested $10,000 when Cook took office, the investment would now be worth approximately

, more than three times the S&P 500’s return over the same period [4].

Apple’s FY2025 financial report shows [0]:

Financial Indicator	FY2021	FY2025	Growth Rate
Revenue	$36.53 billion	$41.62 billion	+13.9%
Net Profit	$8.5 billion	$11.2 billion	+31.8%
Gross Margin	41.8%	46.9%	+5.1 percentage points
Operating Cash Flow	$10.54 billion	$11.15 billion	+5.8%
Earnings Per Share (EPS)	$5.61	$7.46	+33.0%

For FY2025 (ending September 27, 2025), Apple achieved:

• Revenue
  : $416.16 billion, a 6.4% year-over-year increase
• Net Profit
  : $112.01 billion, a 19.5% year-over-year increase
• Gross Margin
  : 46.9%, a record high
• Services Revenue
  : $109.16 billion, a 13.5% year-over-year increase

Apple continues to implement a large-scale shareholder return program. In FY2025 [0]:

• Share Repurchases
  : $90.71 billion in expenditures
• Dividend Distributions
  : $15.42 billion in expenditures
• Total Cumulative Returns to Shareholders
  : Over
  $115 billion

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From the perspective of shareholder value, the “cost-effectiveness” of Cook’s compensation is as follows:

Analysis Indicator	Value	Industry Interpretation
Average Compensation as a Percentage of Net Profit	~0.13%	Extremely Efficient
Compensation as a Percentage of Market Cap	~0.019%	Extremely Low
Net Profit Generated per Dollar of Compensation	~$770	Extremely High
Market Cap Increment Generated per Dollar of Compensation	~$510	Extremely High

: Cook’s compensation accounts for only approximately of Apple’s annual net profit, meaning that for every $1 Apple pays its CEO, it generates approximately . From a return on investment perspective, Cook’s compensation is one of Apple’s most “cost-effective” investments.

Cook’s compensation structure features

:

• 77.4% is equity incentives
  : Typically subject to specific shareholder return targets for vesting
• 16.2% is performance cash bonus
  : Directly linked to Apple’s performance indicators such as revenue and profit
• Only 4.0% is fixed compensation
  : Reflects a strong risk-sharing mechanism

Apple emphasized in its proxy statement that Cook’s performance rewards are directly tied to “Apple’s performance”, and rewards are only realized when the company meets or exceeds performance targets [1][2].

Company	CEO	2024-25 Annual Compensation (USD Million)	Compensation-to-Revenue Ratio
Apple	Tim Cook	74.3	0.018%
Microsoft	Satya Nadella	48.5	0.020%
Alphabet	Sundar Pichai	35.0	0.025%
NVIDIA	Jensen Huang	34.6	0.032%
Tesla	Elon Musk	44.9	0.065%

While Cook’s compensation is high in absolute terms, his compensation-to-revenue ratio is at a low level within the industry when considering Apple’s revenue scale and profitability.

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The market for top CEO positions has the following characteristics [6]:

• Extremely scarce supply
  : There are only a handful of CEO candidates worldwide capable of managing trillion-dollar market cap enterprises
• Steep demand curve
  : CEO decisions for a $50 billion market cap company can impact billions of dollars in valuation
• Global talent competition
  : U.S. companies must compete with global private equity firms and sovereign wealth funds for top talent

From an economic perspective [6]: For a company with a $50 billion market cap, if a CEO’s strategic decisions drive a 2% valuation increase, this creates

. Against this backdrop, paying $20 million in compensation is completely economically rational. The core judgment should be “whether the value created by the CEO exceeds their compensation cost”.

In the executive compensation structure of the technology industry, equity incentives typically account for more than 70% [5], which means:

• Executives’ personal wealth is deeply aligned with shareholder interests
• Executives can only receive expected benefits when the stock price rises
• The incentive period is usually 3-5 years, encouraging long-term value creation

According to Equilar research, the median CEO-to-worker pay ratio for S&P 500 companies in 2024 was approximately

[5]. Based on Cook’s annual compensation of $74.3 million, this is equivalent to the annual salary of an average U.S. worker (approximately $62,088) over about [2].

Critics point out that even when company performance declines, CEO compensation often does not decrease year-over-year:

• Equity incentive grants are typically based on historical performance
• Severance compensation mechanisms such as “golden parachutes”
• Compensation committees may be influenced by management

Some views hold that there should be stricter caps on CEO compensation, especially when the company faces significant risks or poor performance.

The SEC reaffirmed in 2025 that executive compensation disclosure reform remains a priority [5]. Future requirements are expected to include:

• Clearer explanations of the linkage between compensation and performance
• Disclosure of detailed calculation methods for compensation ratios
• Transparency in the decision-making process of compensation committees

In 2025, executive compensation plans received an average support rate of approximately

, with a failure rate of only about [5]. However, investor advisory firms ISS and Glass Lewis still oppose the compensation plans of some companies, focusing mainly on:

• Compensation repricing practices
• Excessive severance compensation
• Overly lenient performance indicator setting

The technology industry faces unique compensation challenges [5]:

• Higher CEO turnover rate than other industries (reaching a record high in 2024)
• Accelerated technological change requires CEOs to have stronger adaptability
• Intensified talent competition in the AI era

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Evaluation Dimension	Score	Explanation
Shareholder Return Creation	★★★★★	1,908% cumulative return, far exceeding market benchmarks
Compensation Efficiency	★★★★★	Compensation accounts for only 0.1% of net profit
Degree of Linkage with Performance	★★★★☆	77% is equity incentives, with clear performance orientation
Peer Competitiveness	★★★★☆	Positioned at the 80th-90th percentile in the industry
Transparency	★★★★★	Detailed SEC disclosures and proxy statement explanations
Overall	★★★★☆	Overall reasonable, with individual details that can be optimized

1. From the perspective of shareholder value
   : Cook’s compensation is highly reasonable. With approximately 0.1% of net profit and a triple-digit value creation multiple, it is one of Apple’s most return-generating “expenditures”.
2. From the perspective of industry comparison
   : While Cook’s compensation is at the top tier, his compensation-to-revenue ratio is in the lower range of the industry when considering Apple’s scale, profitability, and market position.
3. From the perspective of compensation structure
   : The highly performance-linked compensation design (77% equity incentives) ensures long-term alignment between management and shareholder interests.
4. From the perspective of governance
   : Apple’s compensation disclosures are transparent, the compensation committee operates independently, and compensation positioning is based on peer company analysis, which is in line with best governance practices.

• Succession planning uncertainty
  : As Cook (65 years old) considers reducing his workload, succession planning has become a focus of market attention [7]. John Ternus has been reported as a potential successor, but there is uncertainty about whether the new leadership will continue the current compensation policy.
• AI strategy challenges
  : Against the backdrop of competitors’ massive investments in AI, Apple’s AI strategy is relatively conservative, which may affect long-term growth prospects.
• Macroeconomic policy risks
  : Tariff policies and international trade frictions of the new U.S. government may affect Apple’s supply chain and market strategy.

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Chart Explanation: Shows the trend of Cook’s compensation from 2019 to 2025, Apple’s market cap growth, the ratio of compensation to market cap, and a comparison with the compensation of the average U.S. worker. The data shows that Cook’s average annual compensation is approximately $98.8 million, while Apple’s average market cap over the same period is approximately $258.6 billion, indicating extremely high compensation efficiency.

Chart Explanation: Shows the comparison of cumulative shareholder returns between Apple and the S&P 500, the breakdown of Cook’s 2025 compensation, the comparison of CEO compensation in the technology industry, and the revenue and net profit performance from FY2021 to FY2025.

Chart Explanation: Shows the comparison of $10,000 investment growth (Apple vs. S&P 500), the comparison of Cook’s compensation and net profit, the ratio of compensation to net profit, and the CEO-to-worker pay ratio in the technology industry.

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[1] MacRumors - “Apple CEO Tim Cook Earned $74.3 Million in 2025” (https://www.macrumors.com/2026/01/08/tim-cook-2025-salary/)

[2] Fortune - “Apple CEO Tim Cook out-earns the average American’s salary in just 7 hours” (https://fortune.com/2025/12/12/apple-ceo-tim-cook-out-earns-average-american-salary-7-hours-can-buy-new-home-in-2-days-wealth-billionaire-luxury-high-net-worth/)

[3] Apple Inc. DEF 14A Proxy Statement (https://www.sec.gov/Archives/edgar/data/320193/000130817925000008/aapl4359751-def14a.htm)

[4] Medium - “How Tim Cook Built a $3.7T Empire Without Innovation” (https://medium.com/@truthbit.ai/how-tim-cook-built-a-3-7t-empire-without-innovation-1ba6d0926221)

[5] Mercer - “Preparing for 2026: Ten tips for compensation committees” (https://www.mercer.com/en-us/insights/total-rewards/executive-compensation/preparing-for-2026-ten-tips-for-compensation-committees-and-hr-teams/)

[6] The Daily Economy - “Stop Fixating on CEO Pay Ratios and Start Fixing Labor Markets” (https://thedailyeconomy.org/article/stop-fixating-on-ceo-pay-ratios-and-start-fixing-labor-markets/)

[7] The New York Times - “A profile of Apple SVP John Ternus, the head of hardware engineering” (https://www.nytimes.com/2026/01/08/technology/apple-ceo-tim-cook-john-ternus.html)

[8] Apple Inc. Form 10-K (2025-10-31) (https://www.sec.gov/Archives/edgar/data/320193/000032019325000079/aapl-20250927.htm)

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: This report is for reference only and does not constitute investment advice. Investors should make independent judgments based on their own circumstances and bear corresponding investment risks. Jinling AI does not make any guarantees regarding the accuracy, completeness, or timeliness of the report content.