By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch)?Apple Inc.?s chief executive Tim Cook took a 99% pay cut in 2012, while Netflix Inc. CEO Read Hastings saw his salary doubled for 2013.
The big shifts in compensation, reflecting a year of upheaval for the companies, were detailed in filings that Apple /quotes/zigman/68270/quotes/nls/aapl AAPL -1.06% ?and Netflix /quotes/zigman/87598/quotes/nls/nflx NFLX -1.29% ?made with the U.S. Securities and Exchange Commission late Friday.
/quotes/zigman/68270/quotes/nls/aapl AAPL 509.59, -5.47, -1.06%/quotes/zigman/87598/quotes/nls/nflx NFLX 89.33, -1.17, -1.29%
Apple?s disclosure came as part of the company?s proxy report, issued ahead of its annual shareholders? meeting set for Feb. 27, 2013. Apple said that in 2012 it cut Cook?s pay by 99% in 2012 from what he earned in 2011.
However, the reason Cook?s pay package was so much lower than last year was because Apple didn?t give its CEO a stock award in 2012. Cook still earned $1.36 million in salary, plus a cash bonus of $2.8 million, giving him a total salary of $4.16 million for the year?a 51% increase over what he earned a year ago.
Apple?s year proved to be one of the most-trying in recent times for the company. The company?s stock price has risen almost 26% this year, closing Friday at $509.5 a share. But that level is also down by nearly 28% since Apple?s stock hit an all-time high of $705.07 a share on Sept. 21.
Cook, who became CEO in 2011 shortly before the death of Steve Jobs, has this year overseen the release of two new versions of the iPad, the iPad Mini, new Mac desktop and laptop computers, and the iPhone 5.
However, Apple suffered a black eye when it replaced Google Maps on the iPhone and iPad with its own Apple Maps application, and was widely criticized for the app providing wrong directions and locations. In October, Scott Forstall, Apple?s senior vice president for iOS software, resigned from Apple following the Maps debacle, and John Browett, who had been head of Apple?s retail operations for just six months, was let go by the company. Read more about Apple's executive shake-up.
Netflix?s Hastings, meanwhile, will see his pay doubled in 2013, compared with what he earned in 2012.
In an SEC filing, Netflix said Hastings will get a salary of $2 million, plus a bonus of $2 million in stock options next year. In 2012, Hastings earned $500,000 in salary and $1.5 million in Netflix stock options.
Hastings and Netflix weren?t without their own drama in 2012 following what had be a brutal second half of 2011. During this year, Netflix?s share price has risen almost 29%, to close Friday at $89.33. However, like Apple, Netflix?s stock has been trimmed significantly since reaching its year-to-date high point of $133.43 on Feb. 7.
Among the issues Hastings faced in 2012 was continued backlash over Netflix?s 2011 moves to separate its DVD-rental and video-streaming service offerings, which resulted in a 60% price increase for customers wanting to keep both services. During 2012, Netflix also had to trim forecasts for its video-streaming subscriber growth, leading Wall Street to raise concerns about Netflix?s business prospects.
Also, late in the year, Coinstar Inc.?s /quotes/zigman/63447/quotes/nls/cstr CSTR +0.18% Redbox, which runs a nationwide line of thousands of DVD-rental kiosks, said it and Verizon /quotes/zigman/262341/quotes/nls/vz VZ -1.33% ?would launch a beta version of their video-streaming service by the end of December. The service, meant to challenge Netflix?s market position, will start a $8 a month, a price comparable to Netflix?s streaming-only service option. Read more about Netflix and the Redbox challenge.
/quotes/zigman/68270/quotes/nls/aapl
US : U.S.: Nasdaq
Volume: 12.38M
Dec. 28, 2012 4:00p
Market Cap$478.41 billion
/quotes/zigman/87598/quotes/nls/nflx US : U.S.: Nasdaq
Volume: 1.58M
Dec. 28, 2012 4:00p
/quotes/zigman/63447/quotes/nls/cstr US : U.S.: Nasdaq
Volume: 391,049
Dec. 28, 2012 4:00p
Rev. per Employee$806,583
/quotes/zigman/262341/quotes/nls/vz US : U.S.: NYSE
Volume: 9.08M
Dec. 28, 2012 4:01p
Market Cap$122.22 billion
Rev. per Employee$589,154
Rex Crum is a reporter for MarketWatch in San Francisco. Follow him on Twitter @mktwcrum.
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