Apple's board says that Tim Cook has to fly private from now on 'in the interests of security and efficiency'
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- Apple CEO Tim Cook is now required by Apple's board of directors to fly on private aircraft, even for personal travel.
- Apple says it's for security and safety reasons.
- Tim Cook racked up $93,109 in personal travel costs for Apple in 2017, which counts as part of his compensation package.
- Cook made $12,825,066 in total compensation at Apple in 2017.
Apple's board of directors is now making CEO Tim Cook fly on private aircraft when he travels, whether it's for work or for pleasure.
"This policy was implemented in 2017 in the interests of security and efficiency based on our global profile and the highly visible nature of Mr. Cook's role as CEO," says Apple in a new shareholder proxy statement released on Thursday afternoon.
The proxy statement goes on to say that any time Cook uses an Apple private jet for personal travel, the costs are considered extra compensation, on which he will have to pay taxes.
To that end, Apple says that Cook racked up $93,109 in personal travel costs for the company, "based on hourly flight charges and other variable costs incurred by Apple for such use, including variable fuel charges, departure fees, and landing fees."
Similarly, Apple paid $224,216 in "incremental" private security costs for Cook, says the statement, including hiring personnel specifically for his benefit. All told, Cook made $12,825,066 at Apple in 2017 - including a $16,200 contribution to Cook's 401(k) retirement account from the company.
And if you were wondering, other Apple execs get to use the private jets, too, if required. But if they bring a spouse or other family members, Apple says they have to pay toward those same "incremental costs."
Private air travel is fabulously expensive, to the point where even the richest businesspeople on Earth don't always bother. Warren Buffett famously named his private jet "The Indefensible" after giving in to the allure of the convenience and luxury.
But, hey, if Apple says that Cook has to do it, there's not much he can do about it.