Say-on-Pay voting is rarely internalized by company executives and boards, but something new is brewing at Apple (NASDAQ: AAPL). The compensation committee and his CEO Tim Cook have decided that he will cut his annual compensation for 2023 by 40%. In response to shareholder criticism. His $3 million base salary and his $6 million bonus remain the same, but his total available equity his awards have decreased from his $75 million to $40 million, his The total payout target will be his $49 million.
Other changes: Cook’s share of stock units linked to Apple’s (AAPL) performance will account for 75% of overall stock compensation, up from 50% in 2022. This will align Cook’s incentives more closely with future growth performance rather than time spent at the company. Apple (AAPL) has also lowered the number of restricted shares Cook will receive if he retires by 2026.
“The compensation committee balanced Mr. Cook’s recommendations to adjust compensation to take into account shareholder feedback, Apple’s extraordinary performance, and feedback received,” Apple said in its SEC filing. bottom. “The Compensation Committee places Mr. Cook’s annual target compensation between his 80th and 90th percentiles relative to his group of future key peers, given Apple’s size, scope and performance comparisons. intend to do something.”
Further details: Executive compensation was a big debate at last year’s annual shareholders’ meeting. Institutional Investor Services has recommended that Apple (AAPL) shareholders vote against Cook’s salary package.Some pressure has mounted since then, especially as Apple (AAPL) grapples with supply problems in China, weakening tech demand and potentially breaking its 3.5-year growth streak in the holiday quarter. (AAPL) is 6% up YTD, they have down 24% over the past year, 27% decrease The Nasdaq Composite Index is dominated by tech stocks.