Apple CEO Tim Cook
After almost a decade of running one of the most profitable companies on the planet, Apple CEO Tim Cook has finally joined the billionaires club.
Cook has earned the coveted status through the collective worth of his assets, his Apple salary, and his Apple stock. The analysis of his new wealth also accumulated his recent share sales from the tech company.
The news also comes on the heels of the record-breaking possibility of Apple hitting a $2 trillion market cap. As stocks rise amid the coronavirus (COVID-19) pandemic, Apple has gained the opportunity to become the first company to achieve this market value.
Cook has been at the helm for more than nine years, of course, he has been paid quite well while being at Apple but recent stock moves will push his wealth even further. One fun fact here is that Cook owns less than 0.03 percent of Apple stock.
That information is startling as you think about how much the price per share would have to multiply for him to increase his net worth to be in the billions. Recall that Cook also earns around $3 million per year to watch over Apple and make the best decisions for the company.
A believe that he is on the right track while managing Apple and sitting on boards of companies such as Nike.
How Did Cook Get Here?
Tim Cook became a part of Apple in 1998. That’s about two decades ago. Cook began his journey in senior positions at the company and held titles that would range from COO to VP of Global Sales and Operations before transitioning into the CEO role. These positions all required a deep understanding of how Apple operates and what creates value for Apple’s bottom line.
He would take the helm of CEO around August 2011.
Stocks Keep Raging in Tech
The market is in melt-up mode as stocks increase in value while the economy shows no signs of substantial strength. Global institutions such as the IMF and others indicate that global growth will slow over this year and the next few years. Stocks still have not gotten the message. Technology companies and their employees (who’s compensation is partially tied to stocks) are quite gleeful about this change.
Apple will conduct a four for one stock split to make sure that more investors can buy Apple stock without having to hesitate due to the dollar value of one unit. That will certainly be a boon to Apple holders as more people allocate their savings to Apple stock.
But again, Apple is just one of several technology companies that are witnessing substantial growth in it’s stock price.
Let’s take a look at a few of the people who have been blessed by the stock performance as of late.
Jeff Bezos, the CEO of Amazon is one of the people who has seen his wealth skyrocket because of the latest moves in the stock market. Mark Zuckerberg, the founder of Facebook, sees substantial value, as well as the leaders of publicly traded startup technology companies across the globe.
The reason why Cook is a compelling case is because he took over after Steve Jobs passed on. The summary of his reign for the most part has been, sure, there’s no significant innovation at Apple but at least he’s keeping the money flows progressing. Investors are buying the Apple diversification story and that is why Tim Cook, who is not the founder of Apple, will be a billionaire due to Apple.
More tech companies are replacing founders with other CEO’s. Take for instance Google with Sundar Pichai, Microsoft with Satya Nadella, and other large companies that have non founders at the helm. In some cases, like Uber, CEO’s were forced out, in others, they left amicably to pursue other endeavors.
Thankfully, Cook keeps everything in a steady state Apple and most people seem pleased with his performance. Watch and see how Cook and Apple do over the next few years.