Apple’s Tim Cook now required to fly private company plane

By Business LeadersFOXBusiness

Apple CEO Tim Cook’s big payday

FBN’s Hillary Vaughn on Apple CEO Tim Cook’s $12.8 million compensation package in fiscal 2017.

Apple (NASDAQ:APPL) CEO Tim Cook will no longer be flying on commercial aircraft.

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The world’s most valuable company requires its chief executive to use private aircraft for all business and personal travel as an “additional security measure,” according to the company’s most recent regulatory filing.

Apple said the reason for implementing the new policy for Cook is due to “interests of security and efficiency based on our global profile” and Cook’s high profile as chief executive. His personal air travel expenses totaled $93,109 in Apple’s 2017 fiscal year, which ended in September, and is based on hourly flight charges and variable fuel charges, as well as departure and landing fees.

“Mr. Cook recognizes imputed taxable income and is not provided a tax reimbursement for personal use of private aircraft,” Apple said in its filing.

However, Cook isn’t the only corporate executive that’s required to use a corporate jet for personal travel. Disney (NYSE:DIS) CEO Bob Iger and Facebook (NASDAQ:FB) CEO Mark Zuckerberg are also mandated to use private aircraft when traveling, according to the companies’ respective regulatory filings. Iger’s personal air travel expenses totaled $282,831 in fiscal 2016, while the Facebook chief executive racked up about $871,390 in costs related to personal usage of private planes last year.

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Jeff Immelt, the former CEO of General Electric (NYSE:GE), also flew aboard corporate aircraft during his tenure at the helm of the company, and even had an additional plane follow, at times parking far away to avoid attention. The second plane was used as a backup, in case the one Immelt rode in had “mechanical problems.”

“Two planes were used on limited occasions for business-critical or security purposes,” a General Electric spokesperson told FOX Business in October.

Cook’s total compensation for 2017 rose to $12.8 million, a near 50% increase from the year prior. Due to slumping iPhone sales in 2016, Cook’s pay was cut 15%. Still, his current aggregate compensation is noticeably lower than other members of the company’s executive suite who were listed in the filing. Apple’s senior vice president of retail, Angela Ahrendts, former CEO of Burberry, topped the list with a total compensation of $24.2 million in 2017.

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