Apple Inc. is cutting CEO Tim Cook’s salary by more than 40% to $49 million by 2023.
Apple Inc. is cutting Chief Executive Officer Tim Cook’s salary by more than 40% to $49 million by 2023, citing investor guidance and Cook’s own salary adjustment request.
As part of the changes, the percentage of stock units awarded to Cook and tied to Apple’s performance will increase from 50% to 75% in 2023, as well as in the coming years, the company said in a statement. a regulatory filing on Thursday. For 2022, Cook received $99.4 million in compensation, including $3 million in base salary, approximately $83 million in stock bonuses and bonuses. This is up slightly from 2021, when his total salary package was $98.7 million.
Cook’s latest payout is based on “balanced shareholder feedback, Apple’s outstanding performance, and a recommendation from Mr. Cook.” Iphone the manufacturer said in the filing. The company also plans to “set Mr. Cook’s annual target remuneration between 80 and 90 percent of our core peer group in the coming years,” Apple speak.
Apple has received criticism from groups like Institutional Shareholder Services over Cook’s previous compensation package, but a majority of shareholders voted it through last year. ISSa leading consulting firm, complained that Cook’s stock would continue to be awarded after retirement and that half of the bonus was independent of performance criteria such as the company’s share price.
The $49 million target compensation includes a $3 million salary and $6 million bonus as of 2022, as well as an equity award value of $40 million. His equity prize pool in 2022 is $75 million. Cook’s actual total compensation for 2023 may fluctuate based on the company’s stock performance.
Cook, 62, has pledged to donate his fortune to charities.
It is rare for CEOs to offer to cut their own compensation. Pay packages are increasingly lavish, and 2021 is a record year for executive compensation, according to Bloomberg data.
But shareholders are increasingly pushing back against such packages. According to Mercer, a record number of so-called postpaid votes failed in 2021, which may reflect shareholder frustration with how companies are performing during the pandemic.
Apple also disclosed the 2022 compensation to Chief Financial Officer Luca Maestri, Chief Counsel Kate Adams, retail chief Deirdre O’Brien, and CEO Jeff Williams. All of those executives were paid about $27 million — including salaries, stock, and bonuses — in 2022, up slightly from the previous year.
The Cupertino, California-based tech giant also announced that its annual shareholder meeting will be virtual on March 10.
Shares of Apple fell 27% last year, though that drop was less than that of the tech-heavy Nasdaq Composite Index. They are up 2.7% so far this year.
