Tim Cook, chief executive officer of Apple Inc., speaks during the “First Use the Tool” ceremony at the TSMC facility under construction in Phoenix, Arizona, on Tuesday, December 6, 2022.
Caitlin O’Hara | Bloomberg | beautiful pictures
Apple CEO Tim Cook will take a pay cut in 2023 to $49 million in total compensation, the company said in a statement. submit with the SEC.
Cook requested the change, Apple said in the filing, following a shareholder vote on his payment plan. The company also reduced the limited number of shares Cook would receive if he retired before 2026.
In 2022, Cook earned just under $83 million in stock bonuses, $12 million in bonuses, and $3 million in salary. He also gets benefits including retirement plan contributions, security, private jet travel, and more than $46,000 in holiday cash.
Apple’s compensation committee said it made the change in response to a pay vote last year in which 64% of shareholders approved Cook’s compensation, down from 95% approved it for the year. Apple’s financials 2020.
However, Apple’s board still praised Cook’s performance and said it trusted the CEO’s long-term strategic decisions.
Executive compensation has come under increasing pressure from institutional shareholders recently. Institutional Shareholder Services recommended Apple shareholders vote against Cook’s payment plan at last year’s annual meeting.
The compensation committee, which includes Art Levinson, Al Gore and Andrea Jung, said it has reached out to institutional shareholders to gauge how they feel about Cook’s salary.
“Based on these important conversations, we have made changes to the size and structure of Tim’s compensation in 2023,” the committee wrote.
Many changes are possible in the store.
“In consideration of Apple’s size, scope and comparative performance, the Compensation Committee also intends to set Mr. Cook’s annual compensation target between the 80th and 90th percentiles of our primary peer group. in the coming years,” the commission said.
Chefs are paid mainly in limited stock units. The actual number of shares of Apple stock Cook awards depends on Apple’s performance relative to the S&P 500. Apple stock has performed well enough that Cook typically awards the maximum amount.
Apple said that since Cook took over as CEO in 2011, Apple shares have risen 1,212% compared with 290% for the S&P 500.
In addition to the reduction in the total target, Cook’s 75% stake will be tied to Apple’s stock performance in 2023, rather than 50%.
Apple announces stock subsidies to Cook in September 2020 extending through 2025. Cook received it on the first day of Apple’s fiscal 2021, which begins in late September. Once it was approved, Cook’s stock grant would give him 1 million shares worth about $114 million at the time if Apple hits all of its goals.
Cook’s previous stock grant from 2011 ended up worth more than $900 million at Apple September 2020 stock price.
Cook said in 2015 that he planned to donate his fortune to charity.
