Golden Handcuffs
30 August 2011
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Professor Jennifer Hill says the remuneration package for new Apple CEO Tim Cook is common in the US tech industry and is likely to become more common in the corporate and financial services sector. A report in the Sydney Morning Herald states that Apple has given its new CEO 1 million shares of restricted stock as he takes over the reins of the company from Steve Jobs. At current prices, the stock package is worth more than $US383 million ($366 million). However, his nine-figure bonus package has been painted as a financial "golden handcuff" to the company. "This is due to the fact that the global financial crisis raised concerns about the dangers of short-termism," Professor Hill asserts. "Deferred holding periods for stock-based remuneration, such as that evident in Tim Cook's compensation, are perceived to address this problem, by enhancing long-term goals." |
Contact: Greg Sherington
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