Why Apple's Board Is Requiring CEO Tim Cook to Only Fly Private

An Apple iPhone 7

In addition to covering executive compensation, the proxy statement also says that Apple's board now requires Apple CEO Tim Cook use private aircraft "for all business and personal travel".

Further, the proxy statement says that Cook will have to pay taxes anytime he uses an Apple private jet for personal travel as the cost will come under extra compensation.

Cook, along with other Apple board directors such as Disney CEO Bob Iger, former U.S. Vice President Al Gore, and former Northrop Grumman CEO Ron Sugar, are up for election to remain in the board another year. 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 previous year. Tim Cook will get paid $12.8 million which is 46% more compared to that of the a year ago. It could have made even more this quarter given it coincides with the launch of Apple's anniversary phone, coupled with increased sales this holiday season - analysts said six million iPhone Xs were sold over Black Friday.

It won't be the first time an Apple CEO has flown private. He also took home $3.06 million in salary and a previously disclosed equity award of $89.2 million, bringing his total payout for the year to about $102 million.

Cook's predecessor, the founder of Apple Steve Jobs had his own private jet that was gifted to him during 2000 by Apple.

Apple's stock surged 37 per cent in fiscal 2017, more than doubling the increase in the S&P 500. With that said, Apple does make $151 more than Samsung, the next top performer, for every unit sold. Year-on-year sales growth was witnessed in all product categories in the fiscal fourth-quarter ended September 30, while revenue surged 12% to $52.6 billion.

Since then, demand for Apple's newer iPhone models has been strong, and the company has gotten continued traction from its services division, which includes Apple Pay, AppleCare and digital content.

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