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SEC Watch: Apple’s Profits Ballooned In 2010; So Did Jobs’ Compensation

Apple (NSDQ: AAPL) reported a very good year for 2010 – and while Steve Jobs is still only taking a $1 as part of his annual salary, his compensation grew substantially, the company said in an SEC filing. In the year Apple unveiled its iPad and had some embarrassing struggles related to the performance of the iPhone 4, the company’s revenue grew to $65.2 billion, representing a 52 percent gain over 2009. Net income meanwhile grew to $14 billion in 2010, an increase of 70 percent from the year before. Apple also ended the year with a cash and “marketable securities” balance of $51 billion for a 50 percent rise year-over-year. Individually, Jobs and the directors benefited from the strong results, while the CEO also received a great deal of reimbursements for things like his private jet.

Last year, Jobs’ reimbursements totaled $248,000 for use of his private jet for company business. That’s a lot more than the $4,000 in expenses Apple paid for the jet last year, when the CEO took a six-month medical leave. However, it’s also significantly lower than the $871,000 he was refunded with in 2008.

Jobs owns approximately 5.5 million shares of Apple common stock, which he’s had since rejoining the company in 1997. Forbes noted that Apple’s shares closed at $333.73 on Thursday, bringing the value of Jobs’ personal holdings to $1.84 billion.

COO Tim Cook also did well and was awarded a $5 million bonus for stepping in when Jobs was on medical leave. Cook’s salary in 2010 was about $800,000. In addition to that and the $5 million bonus, he received $52.3 million from the value of his stock holdings. In all, Cook’s compensation for the year was $59 million, just a 1.2 percent increase over what he received the previous year.

2 Responses to “SEC Watch: Apple’s Profits Ballooned In 2010; So Did Jobs’ Compensation”

  1. You wrote, “his compensation grew substantially, the company said in an SEC filing.”

    This is an utter falsehood. Reimbursement for expenses is NOT compensation. A paper increase in share value is also NOT compensation. Those shares were given about 7 years ago, not in 2010. Nowhere did Apple say anything like, “his compensation grew substantially”.

    I’m not really sure why this column is called “SEC Watch”, when it seems you know very little about finance.