Apple CEO Tim Cook to take a 40% pay cut this year, with target total compensation at $49M. Shareholders voted 6.21B
Apple CEO Tim Cook to Take 40% Pay Cut in 2023
Apple Inc. announced in a regulatory filing late Thursday that CEO Tim Cook will take a more than 40% pay cut this year from a year earlier as the company adjusts how it calculates its compensation partly based on a recommendation from Cook himself. His target total compensation for 2023 is set at $49 million, with a $3 million salary, $6 million cash incentive, and $40 million in equity awards.
Last March, the Cupertino, California-based tech giant conducted an advisory shareholder vote on executive pay which was overwhelmingly supported by 6.21 billion shares voting in favor of the executive pay package and 3.44 billion against; there were also abstentions and broker non-votes. Apple said its compensation committee took into account shareholder feedback, the company’s performance and Cook’s own recommendation to adjust his compensation.
Cook has received a $3 million base salary for the past three years but his total compensation – which includes restricted awards – jumped from $14.8 million in 2020 to $98.7 million in 2021 and $99.4 million in 2022; however, Apple said he supported the changes to his compensation going forward which will position him between the 80th and 90th percentiles relative to its primary peer group for future years.
The company will hold its annual meeting March 10th with Apple shares edging down to $133 midday trading; it has declined about 23% in the past year despite their expansion efforts including TSMC’s chip factory located in Camas, Washington as well as design centers located in San Jose, California and Austin, Texas. This news of Tim Cook’s pay cut is sure to be discussed further at their upcoming annual meeting as shareholders continue to monitor Apple’s progress throughout 2023.