Apple CEO Tim Cook to take a 40% pay cut

Apple Inc. plans to cut CEO Tim Cook’s compensation by more than 40% to $49 million in 2023.

As part of the change, the percentage of stock units awarded to Cook and tied to Apple’s performance will increase from 50% to 75% in 2023 and will increase in the future, the company told regulators on Thursday. stated in the filing of the In 2022, Cook received a base salary of $3 million, approximately $83 million in stock compensation, and $99.4 million in compensation, including bonuses. This is up slightly from his 2021, when his total compensation package was his $98.7 million.

Cook’s latest compensation is based on “balanced shareholder feedback, Apple’s exceptional performance and recommendations from Cook,” the iPhone maker said in a filing. Compared to future major peer groups,” Apple said.

Apple has faced criticism from groups such as Institutional Shareholder Services over Cook’s previous compensation package, but last year a majority of shareholders voted in favor. The head of the consulting firm, ISS, complained that Cook’s shares will continue to vest after he retires and that half of his compensation will not depend on performance criteria such as the company’s share price.

Target compensation of $49 million includes the same 2022 salary of $3 million, $6 million in bonuses, and $40 million in equity awards. The 2022 stock award was $75 million. Cook’s actual total compensation in 2023 may fluctuate based on the performance of the company’s stock price.

Cook, 62, has pledged to donate his wealth to charity.

CEOs rarely recommend cutting their own compensation. Salary packages have become increasingly lavish, with 2021 set to be a record year for executive pay, according to Bloomberg data.

But shareholders are increasingly resisting such packages. According to Mercer, 2021 saw a record number of so-called Say on Pay votes fail. This may reflect shareholder dissatisfaction with the company’s performance during the pandemic.

Apple also revealed the 2022 compensation of Chief Financial Officer Luca Maestri, General Counsel Kate Adams, Retail Head Deirdre O’Brien, and Chief Operating Officer Jeff Williams. In 2022, all of these executives will be paid approximately $27 million (including salaries, stock and bonuses), a slight increase from the previous year.

The Cupertino, Calif.-based tech giant also announced that its annual shareholder meeting will be held virtually on March 10.

Apple’s stock fell 27% last year, but not as much as the tech-heavy Nasdaq Composite. So far this year he’s up 2.7%.

This article is published from the news agency’s feed with no text changes.

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