Report Card: How Has Tim Cook Performed As Apple CEO In The 10 Years Since Taking Over For Steve Jobs?

Exactly 10 years ago today, Tim Cook took over as CEO of Apple, Inc. AAPL for iconic visionary Apple co-founder Steve Jobs.

At the time of Jobs’ departure, some investors and analysts were skeptical of Cook’s ability to fill Jobs’ shoes. After all, Apple didn’t fare so well in the decade and a half Jobs was gone from the company the first time from 1985 through 1997.

The good news for Apple investors is that Cook has done an exceptional job as CEO up to this point. What he lacks in charisma, Cook more than makes up for in sound leadership, excellent decision-making and product innovation. Any investor looking to grade Cook’s performance 10 years into his tenure would have to give him high marks across the board.

Stock Price And Cash Management: From a stock performance perspective, Cook gets an A+. Apple shares have generated a total return of roughly 1,210% in the past decade. That return is more than three times the 367.7% return of the SPDR S&P 500 ETF Trust SPY and nearly double the 687.4% return of the red-hot Technology Select Sector SPDR Fund XLK in that time.

Another aspect of Cook’s performance that gets an A+ is cash management. Shortly after Cook took the helm, Apple reinstated a dividend in 2012 for the first time since 1995 and announced a new $10 billion buyback plan. Since that time, Apple has gotten even more aggressive with its capital returns.

In 2018, Apple announced a new long-term plan to become net-cash neutral. Since that announcement, Apple’s net cash has dropped from $163 billion to around $72 billion. In fiscal 2020, Apple paid out a whopping $14.1 billion in dividends and completed $72.5 billion in share buybacks.

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Financial Performance And Innovation: It would be unfair to give Cook anything other than an A+ on Apple’s financial performance over the past 10 years as well. When he took over for Jobs, one of the biggest concerns was how Apple would be able to sustain its growth as the global smartphone market gets increasingly saturated. Incredibly, Apple’s revenue and net income have more than tripled in the past decade. Thanks in large part to the buybacks, Apple’s earnings per share is up 417% in that time.

Perhaps the only area where Cook critics might have a valid case is in product innovation, but we would still give him a solid B on innovation as well.

Apple integrated its popular voice assistant Siri into the iPhone 4S in 2011. In 2014, Apple unveiled the Apple Watch. In 2015, it launched streaming service Apple Music. The iPhone X in 2017 came with facial recognition software, a 3D camera and wireless charging capabilities. In 2019, Apple launched streaming video service Apple TV+. Apple has also been working on its secret “Project Titan” auto project at an undisclosed location since 2014. In December 2020, Reuters reported Apple is aiming to launch an autonomous, electric vehicle in 2024.

Only time will tell whether or not the Apple Car could eventually be the centerpiece of Cook’s legacy like the iPhone is for Jobs.