Apple CEO Tim Cook will cut 40% of his salary this year

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Apple said it aims to cut more than 40 percent of Tim Cook’s salary package in 2023, at the chief executive’s request after shareholder criticism.

Apple’s compensation committee decided to award Cook total “target compensation” of $49 million, down from the $84 million target a year earlier, according to a regulatory filing Thursday.

Cook’s base salary is unchanged at $3 million, plus a bonus of $6 million. But the target value for his prize will drop from $75 million in 2022 to $40 million this year, according to Apple.

The percentage of stock units awarded to Cook in his 2023 salary package tied to Apple performance made up 75 percent of his total bonus, up from 50 percent a year earlier, as some shareholders wanted Cook’s incentives to be more in line with future growth.

Apple said Cook’s salary package is within the “80th and 90th” percentile of CEOs compared to the company’s peers.

In recent years, Cook’s net worth has swelled to $1.7 billion, according to Forbes, thanks largely to his stock-based compensation as shares of Apple soar. His actual total salary in 2022 was $99.4 million, and $98.8 million in 2021, a 500 percent increase over the $14.8 million he earned the year before.

A majority of shareholders — 64 percent — gave their approval in an advisory vote to Apple’s executive compensation packages at its annual meeting last year, but the company noted in the filing that it represented a marked decline year-on-year, as annual say on pay proposals received much higher levels. of shareholder support for many years.”

Some shareholders who did not support Apple CEO pay packages, Apple said, “consistently cited the size and structure of the 2021 and 2022 stock awards awarded to Mr. Cook as a primary reason for their decision to vote.”

But Apple said Cook, the former chief operating officer who succeeded the late Steve Jobs as CEO in 2011, continues to enjoy broad support from investors.

“There was also overwhelming support for Mr. Cook’s exceptional leadership and the unprecedented value he has delivered to shareholders,” she said.

Submitting the Compensation Committee’s decision, the company said “balanced shareholder feedback, Apple’s exceptional performance and a recommendation from Mr. Cook to adjust his compensation in light of the comments received.”

Recording Notes Apple makes these decisions “before the beginning of each fiscal year,” which ends September 24, 2022.

Apple has had a rocky few months after disruptions at factories in China, which led to it issuing a rare warning, on November 6, that iPhone production would face “significant” disruptions ahead of the holiday season. Its shares have fallen more than 20 percent in the past 12 months.

Analysts slashed revenue projections for the December quarter — Apple’s most lucrative period — with the consensus now predicting that revenue will not match the $124 billion achieved in the previous year. Such a loss would break the 14-quarter growth streak.

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