Airlines' plans for 2013 up in the air

Airfares will be on the rise in 2013, and those niggling airline fees will metamorphose into optional bundles of services.

Meanwhile, onboard amenities, such as Internet access, entertainment options and refreshed interiors, will abound among U.S. carriers, but tight seating in coach probably won't improve.

And 2013 might be the year you'll finally be able to keep your smartphone, iPad or Kindle turned on during takeoffs and landings.

Those are some of the predictions airline industry experts foresee in the new year. Here's the lowdown on fares, fees and flight experience for 2013.

Higher fares forecast

Airlines pushed through six fare increases in 2012. Expect a similar number in the new year, said Rick Seaney, co-founder of FareCompare.com.

"I wouldn't be surprised to see airfares rise like they did this year, between 3 and 6 percent domestically," Seaney said. That's because airlines will succeed in properly balancing supply and demand by trimming the number of seats they offer to match "decent, but bordering on tepid, demand."

Fares are typically driven by four main factors: competition, most of all, then supply, demand and oil prices. "If you look at those drivers, they are, for the most part, on the airlines' side, which gives them pricing power," Seaney said.

That doesn't mean there won't be good airfare deals on some flights on some routes. And consumers will still see lower prices during off-peak days, such as Tuesday, Wednesday and Saturday departures and off-peak seasons, such as late January and early February. Like this year, summertime fares probably will stay relatively high, he said.

Airline mergers can also affect fares, and a huge one could take place early in 2013. American Airlines and US Airways are in talks about combining.

The general consensus among consumer advocates is that airline mergers aren't good for passengers.

"Any time you have two big airlines merging, that means consumers have less choice and competition is reduced, which only translates to higher prices," said Charlie Leocha, director of the Consumer Travel Alliance.

However, a bit of new evidence bucks that conventional wisdom. Despite four mega-mergers in the U.S. airline industry during the past seven years, fares have not increased significantly, just 1.8 percent per year, according to a December report from professional services firm PwC. In fact, average domestic fares decreased 1 percent from 2004 to 2011 when inflation is factored in, the report found.

Fliers know full well, however, that the fare isn't all that counts nowadays. There are those fees.

Fees get a makeover

The most noticeable trend in recent years with airline fees is that there are more of them: fees for checked bags, aisle seats, onboard meals, among many others. 

"What we hear is that people pay their fare and get to the airport and feel they're constantly being nickeled-and-dimed to death for things that used to be included," said Kate Hanni, founder of FlyersRights.org. 

The top five U.S. carriers alone generated more than $12 billion in fees in 2011, with even more expected through 2012, according to the PwC report.

What consumers call fees, airlines call "unbundling" — making a la carte choices from services that used to be included in the fare.

A likely trend for 2013 might be called "rebundling," airlines packaging a few now-optional services and charging for a tier of service.

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Expectations low for White House 'fiscal cliff' meeting

WASHINGTON (Reuters) - President Barack Obama and congressional leaders were to meet on Friday for the first time since November, with no sign of progress in resolving their differences over the U.S. federal budget and expectations low for a "fiscal cliff" deal before January 1.

Instead, members of Congress are increasingly looking at the period immediately after the December 31 deadline to come up with a retroactive fix to avoid steep tax hikes and sharp spending cuts that economists have said could plunge the country into another recession.

With taxes on all Americans set to rise when rates established under former President George W. Bush expire on December 31, lawmakers would be able to come back in January and take a more politically palatable vote to cut some of the tax rates.

U.S. stocks fell on Friday, with the Dow Jones industrial average dropping 0.48 percent as investors fretted about the lack of certainty.

But some in the market were resigned to Washington going beyond the New Year's Day deadline, as long as a serious agreement on deficit reduction comes out of the talks in early January.

"Regardless of whether the government resolves the issues now, any deal can easily be retroactive. We're not as concerned with January 1 as the market seems to be," said Richard Weiss, a senior money manager at American Century Investments.

The new factor in the mix was involvement by Republican Senate Minority Leader Mitch McConnell, who held conversations with Obama this week and said he expected a new proposal from the president that he would consider.

The White House spent much of Thursday stifling expectations for any new offer from Obama, beyond the limited fallback plan he outlined in vague terms on December 21, which would protect what he described as "middle-class Americans" from the tax hikes, extend unemployment insurance and lay the "groundwork for further work" on deficit reduction and tax reform.

A Senate Democratic aide said he did not believe Obama would repeat an earlier offer to Boehner to hike taxes only for households earning more than $400,000 a year. That number was part of a comprehensive deal that fell apart. Obama is likely to stick with a $250,000 threshold, as some Democrats argue they needs more revenues to compensate for what would likely be fewer spending cuts in a short-term deal.

The major sticking point on taxes is Republican opposition to hikes on anyone, particularly in the absence of heavy cuts in spending for so-called entitlement programs, such as Medicare and Medicaid, the government-run health programs for senior citizens and the poor.

Democrats in Congress want to keep lower tax rates for most Americans, but raise them on those earning above $250,000 a year.

"The wealthy have got to kick in," Senator Debbie Stabenow, a Michigan Democrat, said on CNN on Friday. "The tough part is in the House, where they have taken this very extreme position" of "protecting the wealthy at all costs," she said.

"It's feeling very much to me like an optical meeting than a substantive meeting," said Republican Senator Bob Corker of Tennessee, noting that it was not a sign of urgency to set a meeting for mid-afternoon with a deadline just days away.

"Any time you announce a meeting publicly in Washington, it's usually for political-theater purposes," Senator Lindsey Graham, a South Carolina Republican, said on Thursday on Fox News.

"When the president calls congressional leaders to the White House, it's all political theater or they've got a deal. My bet is all political theater," said Graham, adding that he did not believe an agreement could be reached before the deadline.

(Editing by Alistair Bell and David Brunnstrom)

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Apple loses another copyright lawsuit in China: Xinhua

SHANGHAI (Reuters) - A Chinese court has fined Apple Inc 1 million yuan ($160,400) for hosting third-party applications on its App Store that were selling pirated electronic books, the official Xinhua news agency reported on Friday.

Apple is to pay compensation to eight Chinese writers and two companies for violating their copyrights, the Beijing No.2 Intermediate People's Court ruled on Thursday, Xinhua said.

Earlier in the year, a group of Chinese authors filed the suit against Apple, saying an unidentified number of apps on its App Store sold unlicensed copies of their books. The group of eight authors was seeking 10 million yuan in damages.

"We are disappointed at the judgment. Some of our best-selling authors only got 7,000 yuan. The judgment is a signal of encouraging piracy," Bei Zhicheng, a spokesman for the group, told Reuters.

Apple said in a statement that it takes copyright infringement complaints "very seriously".

"We're always updating our service to better assist content owners in protecting their rights," Apple spokeswoman Carolyn Wu said.

China has the world's largest Internet and mobile market by number of users, but piracy costs software companies billions of dollars each year.

Apple, whose products enjoy great popularity in China, has faced a string of legal headaches this year. In July, Apple paid 60 million yuan to a Chinese firm, Proview Technology, to settle a long-running lawsuit over the iPad trademark in China.

($1 = 6.2360 Chinese yuan)

(Reporting by Shanghai Newsroom and Melanie Lee; Editing by Kazunori Takada and Matt Driskill)

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NHL makes new offer; lockout enters critical stage

NEW YORK (AP) — The NHL made a new proposal to the players' association, hoping to spark talks to end the long lockout and save the hockey season.

Deputy commissioner Bill Daly said Friday the league made its offer Thursday and was waiting for a response. The sides haven't met in person since a second round of talks with a federal mediator broke down Dec. 13.

The lockout has reached its 104th day, and the NHL said it doesn't want a season of less than 48 games. To make that possible, a deal likely must be reached by mid-January.

"We delivered to the union a new, comprehensive proposal for a successor CBA," Daly said in a statement Friday. "We are not prepared to discuss the details of our proposal at this time. We are hopeful that once the union's staff and negotiating committee have had an opportunity to thoroughly review and consider our new proposal, they will share it with the players. We want to be back on the ice as soon as possible."

The union didn't immediately respond to a request for a comment.

The lockout has reached a critical stage, threatening to force a complete cancellation of a season for the second time in eight years. All games through Jan. 14, plus the Winter Classic and the All-Star game already have been called off. The next round of cuts could claim the entire schedule.

The NHL is the only North American professional sports league to cancel a season because of a labor dispute, losing the 2004-05 campaign to a lockout. A 48-game season was played in 1995 after a lockout stretched into January.

It is still possible this dispute could eventually be settled in the courts if the sides can't reach a deal on their own.

The NHL filed a class-action suit this month in U.S. District Court in New York in an effort to show its lockout is legal. In a separate move, the league filed an unfair labor practice charge with the National Labor Relations Board, contending bad-faith bargaining by the union.

Those moves were made because the players' association took steps toward potentially filing a "disclaimer of interest," which would dissolve the union and make it a trade association. That would allow players to file antitrust lawsuits against the NHL.

Union members voted overwhelmingly to give their board the power to file the disclaimer by Jan. 2. If that deadline passes, another authorization vote could be held to approve a later filing.

Negotiations between the NHL and the union have been at a standstill since talks ended Dec. 6. One week later, the sides convened again with federal mediators in New Jersey, but still couldn't make progress.

The sides have been unable to reach agreement on the length of the new deal, how long individual player contract can be, and the variance in salary from year to year. The NHL is looking for an even split of revenues with players. In its previous offer this month, the league agreed to increase its amount of deferred payments from $211 million to $300 million.

The NHL pulled all previous offers off the table after the union didn't agree to terms on its last proposal without negotiation.

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

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Associated Press reporter Tom Odula contributed to this report.

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FBI removes many redactions in Marilyn Monroe file

LOS ANGELES (AP) — FBI files on Marilyn Monroe that could not be located earlier this year have been found and re-issued, revealing the names of some of the movie star's communist-leaning acquaintances who drew concern from government officials and her own entourage.

But the files, which previously had been heavily redacted, do not contain any new information about Monroe's death 50 years ago. Letters and news clippings included in the file show the bureau was aware of theories the actress had been killed, but they do not show that any effort was undertaken to investigate the claims. Los Angeles authorities concluded Monroe's death was a probable suicide.

Recently obtained by The Associated Press through the Freedom of Information Act, the updated FBI files do show the extent the agency was monitoring Monroe for ties to communism in the years before her death in August 1962.

The records reveal that some in Monroe's inner circle were concerned about her association with Frederick Vanderbilt Field, who was disinherited from his wealthy family over his leftist views.

A trip to Mexico earlier that year to shop for furniture brought Monroe in contact with Field, who was living in the country with his wife in self-imposed exile. Informants reported to the FBI that a "mutual infatuation" had developed between Field and Monroe, which caused concern among some in her inner circle, including her therapist, the files state.

"This situation caused considerable dismay among Miss Monroe's entourage and also among the (American Communist Group in Mexico)," the file states. It includes references to an interior decorator who worked with Monroe's analyst reporting her connection to Field to the doctor.

Field's autobiography devotes an entire chapter to Monroe's Mexico trip, "An Indian Summer Interlude." He mentions that he and his wife accompanied Monroe on shopping trips and meals and he only mentions politics once in a passage on their dinnertime conversations.

"She talked mostly about herself and some of the people who had been or still were important to her," Field wrote in "From Right to Left." ''She told us about her strong feelings for civil rights, for black equality, as well as her admiration for what was being done in China, her anger at red-baiting and McCarthyism and her hatred of (FBI director) J. Edgar Hoover."

Under Hoover's watch, the FBI kept tabs on the political and social lives of many celebrities, including Frank Sinatra, Charlie Chaplin and Monroe's ex-husband Arthur Miller. The bureau has also been involved in numerous investigations about crimes against celebrities, including threats against Elizabeth Taylor, an extortion case involving Clark Gable and more recently, trying to solve who killed rapper Notorious B.I.G.

The AP had sought the removal of redactions from Monroe's FBI files earlier this year as part of a series of stories on the 50th anniversary of Monroe's death. The FBI had reported that it had transferred the files to a National Archives facility in Maryland, but archivists said the documents had not been received. A few months after requesting details on the transfer, the FBI released an updated version of the files that eliminate dozens of redactions.

For years, the files have intrigued investigators, biographers and those who don't believe Monroe's death at her Los Angeles area home was a suicide.

A 1982 investigation by the Los Angeles District Attorney's Office found no evidence of foul play after reviewing all available investigative records, but noted that the FBI files were "heavily censored."

That characterization intrigued the man who performed Monroe's autopsy, Dr. Thomas Noguchi. While the DA investigation concluded he conducted a thorough autopsy, Noguchi has conceded that no one will likely ever know all the details of Monroe's death. The FBI files and confidential interviews conducted with the actress' friends that have never been made public might help, he wrote in his 1983 memoir "Coroner."

"On the basis of my own involvement in the case, beginning with the autopsy, I would call Monroe's suicide 'very probable,'" Noguchi wrote. "But I also believe that until the complete FBI files are made public and the notes and interviews of the suicide panel released, controversy will continue to swirl around her death."

Monroe's file begins in 1955 and mostly focuses on her travels and associations, searching for signs of leftist views and possible ties to communism. One entry, which previously had been almost completely redacted, concerned intelligence that Monroe and other entertainers sought visas to visit Russia that year.

The file continues up until the months before her death, and also includes several news stories and references to Norman Mailer's biography of the actress, which focused on questions about whether Monroe was killed by the government.

For all the focus on Monroe's closeness to suspected communists, the bureau never found any proof she was a member of the party.

"Subject's views are very positively and concisely leftist; however, if she is being actively used by the Communist Party, it is not general knowledge among those working with the movement in Los Angeles," a July 1962 entry in Monroe's file states.

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Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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Wall Street extends "fiscal cliff" slide for fifth day

NEW YORK (Reuters) - Stocks fell for a fifth straight day on Friday, putting the S&P 500 on track for its longest losing streak in three months, as the federal government edged closer to the "fiscal cliff" with no solution in sight.

President Barack Obama and top congressional leaders were set to meet to make a last-ditch attempt to avert the devastating tax hikes and spending cuts that threaten to the throw the economy into recession.

Energy shares were the weakest, with the sector slumping 1.4 percent. The group is closely tied to the pace of growth, and investors worry that if no deal is reached on the fiscal cliff, it could severely depress demand for crude oil.

Exxon Mobil lost 1.6 percent to $85.48 and Chevron Corp fell 1.4 percent to $106.96.

Obama and top lawmakers will meet at the White House later on Friday to work on a solution for the draconian debt-reduction measures set to take effect beginning next week.

Stocks, which have been influenced by little else than the flood of fiscal cliff headlines from Washington in recent days, lifted off lows after reports, which could not be confirmed, that Obama would offer a new plan to Republicans.

"We've been whipsawing around on low volume and rumors that come out on the cliff," said Eric Green, senior portfolio manager at Penn Capital Management in Philadelphia.

With time running short, lawmakers may opt to allow the higher taxes and across the board spending cuts to go into effect and attempt to pass a retroactive fix soon after the new year.

"The market doesn't think this will go on for months... it is pretty optimistic something will happen next week," said Green, who helps oversee $7 billion.

The Dow Jones industrial average was down 74.25 points, or 0.57 percent, at 13,022.06. The Standard & Poor's 500 Index was down 7.05 points, or 0.50 percent, at 1,411.05. The Nasdaq Composite Index was down 7.98 points, or 0.27 percent, at 2,977.93.

For the week, the S&P has dropped 1.3 percent, its worst weekly performance since mid-November. The Dow is also down 1.3 percent on the week while the Nasdaq has lost 1.4 percent.

Highlighting Wall Street's sensitivity to developments in Washington, stocks tumbled more than 1 percent on Thursday after Senate Majority Leader Harry Reid warned that a deal was unlikely before the deadline. But late in the day, stocks nearly bounced back when the House said it would hold an unusual Sunday session to work on a fiscal solution.

Positive economic data failed to alter the market's mood.

The National Association of Realtors said contracts to buy previously owned U.S. homes rose in November to their highest level in 2-1/2 years, while a report from the Institute for Supply Management-Chicago showed business activity in the U.S. Midwest expanded in December.

Barnes & Noble Inc shares rose 6.2 percent to $15.24 after the top U.S. bookstore chain said British publisher Pearson Plc had agreed to make a strategic investment in its Nook Media subsidiary. But Barnes & Noble also said its Nook business will not meet its previous projection for fiscal year 2013.

Shares of magicJack VocalTec Ltd jumped 8.5 percent to $17.67 after the company, which provides VoIP or voice over Internet protocol services, forecast more than $39 million in GAAP revenue and over 70 cents per share in operating income for the fourth quarter. The company also said it has appointed Gerald Vento as president and CEO, effective January 1.

The U.S.-listed shares of Canadian drugmaker Aeterna Zentaris Inc surged 16.1 percent to $2.52 after the company said it had reached an agreement with the U.S. Food and Drug Administration on a special protocol assessment by the FDA for a Phase 3 registration trial in endometrial cancer with AEZS-108 treatment.

(Reporting by Ryan Vlastelica; Editing by Kenneth Barry)

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Snow buries parts of Northeast, flights canceled

A powerful winter storm is hitting the Northeast, one day after it hammered the Midwest and plains. Snowfall could top a foot in some areas.

BUFFALO, New York (Reuters) - A powerful winter storm responsible for wind, snow, tornadoes and a flurry of traffic accidents battered the U.S. Northeast on Thursday, canceling hundreds of airline flights but also reviving what had been a snowless ski season.

The storm dumped a foot of snow on parts of the United States with the heaviest snow falling across northern New York and into New England, the National Weather Service reported.

"It feels lovely to have wonderful snow for the kids to play in, and I think it's the kind of snow that's good for making forts and snowmen," said Katryna Nields, a musician in Conway, Massachusetts, who was outside her home shoveling snow.

"It's just the kind of snow you want for between Christmas and New Year's," she added.

The National Weather Service issued winter storm warnings for parts of Pennsylvania, New Jersey, New York and New England and coastal flood advisories from New York's Long Island to southern Maine.

Airlines canceled nearly 700 flights on Thursday after 1,500 U.S. flights were canceled on Wednesday, according to FlightAware.com, a website that tracks flights.

Some flights into and out of the three major New York City area airports - Newark Liberty International, John F. Kennedy International and LaGuardia - were delayed due to the weather, the Federal Aviation Administration reported.

The weather service forecast 12 to 18 inches of snow for northern New England, accompanied by freezing rain and sleet, creating hazards on the highways and at airports.

The snow also brought renewed hope for winter recreation across upstate and western New York.

About 8 to 12 inches of snow fell on Buffalo overnight. Light snow and freezing drizzle persisted throughout the morning hours, with as much as another inch or two possible in some areas.

Before Wednesday evening's snow, Buffalo was 23 inches below average for this time of year, the weather service said.

"It's just a reminder, winter is here," said Tom Paone of the National Weather Service in Buffalo.

Daniel Ivancic, of the Buffalo suburb of Tonawanda, said he bought a snowmobile last winter that has sat largely idle with snow totals well below average.

"I waited and waited and, no snow. This winter it seemed like the same thing was going to happen until the storm hit," Ivancic said. "I'm just going to take advantage of every minute of it."

Retailers, still in the holiday shopping season, expected sales would continue with consumers looking for winter items.

"People are out spending anyway. Weather can trigger what you purchase - not if you purchase, but what you purchase," said Evan Gold, senior vice president of client services at Planalytics, which tracks weather for businesses including retailers.

Police patrolling the New York State Thruway from Buffalo to Albany reported as many as 50 accidents, mostly involving cars that slipped off snowy roads overnight.

The massive storm system dumped record snow in north Texas and Arkansas before it swept through the U.S. South on Christmas Day and then veered north.

The system triggered tornadoes and left almost 200,000 people in Arkansas and Alabama without power on Wednesday.

Authorities said an 81-year-old man died in Georgiana, Alabama after a tree fell on his home.

Alabama Governor Robert Bentley on Thursday toured hard-hit sections of Mobile, where a high school and dozens of homes were damaged and historic oak trees were uprooted.

Residents were carting wheelbarrows filled with debris and tree limbs and, in the city's business district, workers removed pieces of the smashed top floor of Cantrell's photography studio, where a young Jimmy Buffett recorded in the late 1960s.

Virginia authorities responded to nearly 700 car crashes on Wednesday, most of which were due to snow and ice around the Interstate 81 corridor.

A Southwest Airlines jet skidded off the runway on Thursday at Long Island MacArthur Airport, about 50 miles east of New York City, as it taxied for takeoff, Suffolk County police said.

None of the 134 people aboard Tampa-bound flight No. 4695 was injured, police said.

"It's been undetermined at this time if weather was a factor," a police spokeswoman said.

(Additional reporting by Zach Howard in Conway, Massachusetts; Kaija Wilkinson in Mobile, Alabama; Colleen Jenkins in Winston-Salem, North Carolina, Dan Burns in New York and Ian Simpson in Washington; Editing by Ellen Wulfhorst and Claudia Parsons)

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Apple CEO's pay takes big hit vs. record 2011 package

NEW YORK (Reuters) - Apple Inc CEO Tim Cook's 2012 compensation package of just over $4 million is a huge cut on paper for the top executive of the most valuable U.S. corporation, after a 2011 package fattened by more than $376 million in long-term stock awards.

Cook received the largest single pay package awarded to a company CEO in about a decade when he replaced Apple's legendary co-founder, Steve Jobs, shortly before Jobs' death in October 2011.

The maker of the iPhone and iPad made the 2012 compensation disclosures in a regulatory filing on Thursday. Cook, who is in his early 50s, joined Apple in 1998 and became CEO in August 2011.

Virtually all of Cook's $376 million bonus in 2011 was in stock awards that will vest in two chunks - one in 2016 and the other in 2021. This structure was intended to keep Jobs' longtime lieutenant at the helm for many years.

In terms of base salary, Cook actually received a 50 percent increase to $1.4 million for 2012, and the same 200 percent bonus that other top Apple executives like CFO Peter Oppenheimer earned, Apple said in a regulatory filing on Thursday.

The 2012 compensation package for Cook also pales in comparison with his 2010 pay, which was 14 times higher, when he served as chief operating officer.

But Tim Ghriskey, chief investment officer of Solaris Group - which counts Apple stock as the biggest holding among the approximately $2 billion it manages - said Cook's package was "normal CEO compensation."

For example, Yahoo Inc's CEO, Marissa Mayer, a former Google Inc high-flyer hired this year to try to turn around the struggling Internet icon, won a pay package worth more than $70 million. Despite her lack of a CEO track record, her basic pay is comparable to Cook's, with about $1 million in annual salary and up to $2 million in an annual bonus.

Oracle Corp's Larry Ellison, one of the most highly paid chief executives in the United States - and also the world's sixth-richest man, according to Forbes - received total compensation for the year ended May 31, 2012, of $96.2 million - almost all of it in stock options.

That compared with $77.6 million for Ellison in the prior year.

Cook's longtime boss, Jobs, famously received $1 a year in salary in the three years before he stepped down, though in 2000 he too received a stock option that analysts say was valued at almost $600 million at the time.

Cook will not receive any stock awards for 2012, Apple said in Thursday's filing.

The 2012 package includes a salary of $1.4 million and a nonequity bonus of $2.8 million. Cook's base salary actually increased in 2012 from the $900,000 he earned in 2011.

While Apple's shares are roughly 35 percent higher than when Cook became CEO, they have fallen more than 27 percent since October, when they hit a $700.10 high. The stock has declined amid investor worries about intensifying competition in the mobile phone market and growth prospects in important markets including China.

Apple shares were down 1.3 percent at $506.35 on the Nasdaq on Thursday afternoon.

(Reporting by Sinead Carew and Liana Baker in New York, Jim Finkle and Tim McLaughlin in Boston and Edwin Chan in San Francisco,; editing by Kenneth Barry and Matthew Lewis)

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Net loss: Brooklyn fires coach Avery Johnson

NEW YORK (AP) — Avery Johnson was fired Thursday as coach of the Brooklyn Nets, who have fallen to .500 in their season of new surroundings and elevated expectations.

General manager Billy King announced the dismissal in a statement. Assistant P.J. Carlesimo will coach the Nets at home Friday against Charlotte, according to someone with knowledge of the plans. The person spoke on condition of anonymity because details were to be provided at a news conference later in the day.

"The Nets ownership would like to express thanks to Avery for his efforts and to wish him every success in the future," owner Mikhail Prokhorov said in a statement.

After a strong start to their first season in Brooklyn, the Nets have lost 10 of 13 games to fall well behind the first-place New York Knicks, the team they so badly want to compete with in their new home.

But after beating the Knicks in their first meeting Nov. 26, probably the high point of Johnson's tenure, the Nets went 5-10 and frustrations have been mounting.

The Nets were embarrassed by Boston on national TV on Christmas, then were routed by Milwaukee 108-93 on Wednesday night for their fifth loss in six games.

Star guard Deron Williams recently complained about Johnson's offense, and Nets CEO Brett Yormark took to Twitter after the loss to Celtics to voice his displeasure with the performance.

Brooklyn started the season 11-4, winning five in a row to end November, when Johnson was Eastern Conference coach of the month. But he couldn't do anything to stop this slump, one the Nets never anticipated after a $350 million summer spending spree they believed would take them toward the top of their conference.

Johnson has been the Nets' coach for a little more than two seasons. He went 60-116 with the Nets, who moved from New Jersey to Brooklyn to start the 2012-13 season. Johnson coached the Dallas Mavericks to a spot in the NBA Finals in 2006.

This is the NBA's second coaching change this season following the dismissal of Mike Brown by the Los Angeles Lakers.

Johnson arrived in New Jersey with a 194-70 record, a .735 winning percentage that was the highest in NBA history, but had little chance of success in his first two seasons while the Nets focused all their planning on the move to Brooklyn.

They looked to make a splash this summer when they re-signed Williams and fellow starters Gerald Wallace, Brook Lopez and Kris Humphries, traded for Atlanta All-Star Joe Johnson, and added veteran depth with players such as Reggie Evans, C.J. Watson and Andray Blatche.

Johnson didn't have a contract beyond this season but seemed to have the confidence of Prokhorov, the Russian billionaire who before the season said he had faith in "the Avery defense system."

Some predicted the Nets would finish as high as second in the East behind defending champion Miami, and the projections seemed warranted when the Nets started quickly amid much fanfare. But all the good publicity faded in recent weeks once the losing started.

Williams, who has struggled this season, stirred the waters when he expressed his preference for the offense he ran under Jerry Sloan in Utah before a loss to the Jazz. Williams and Johnson, nicknamed "Brooklyn's Backcourt" and expected to be one of the best in the NBA, have shot poorly and rarely meshed.

The Nets were embarrassed near the end of their 93-76 loss to Boston, when fans exited early amid a chant of "Let's go Celtics!"

"Nets fans deserved better," Yormark tweeted after the game. "The entire organization needs to work harder to find a solution. We will get there."

Not under Johnson, though.

The Nets should be able to entice a big-name coach with Prokhorov's billions and the chance to play in a major market at Barclays Center, the $1 billion arena that has drawn praise in the city and from visiting teams.

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