Apple boss Tim Cook will see his pay reduced by more than 40% this year
Apple chief executive Tim Cook will have his annual salary package reduced by more than 40%.
After being criticized by shareholders, the technology giant said that Mr. Cook asked for the reduction.
Apple’s compensation committee awarded him a total “target compensation” of $49m (£45.1m) for 2023.
In the face of supply chain problems, and a slowdown in global economic growth, iPhone maker’s shares dropped sharply last year.
“The Compensation Committee considered shareholder feedback and Apple’s extraordinary performance. Mr Cook was recommitted to adjust his compensation in accordance with the feedback.” Apple said in a filing with a US financial watchdog.
The annual base salary of Mr. Cook will remain the same at $3m. There will also be a bonus up to $6m.
The most important difference to his compensation package is the way he will be granted shares in the company.
The company gave him $75m in shares in 2022, with half of them based on Apple’s performance on the stock exchange.
This year, his target stock award amount has been reduced from $40m to $40m. Three quarters are dependent on share performance.
Although the target for Mr Cook’s compensation in 2022 was $84m his actual pay for the year was $99.4m. The figure also included $630,000.00 in personal security costs, and $712,500 for the use of a private aircraft.
An investor advisory group advised Apple shareholders last year to vote against Mr. Cook’s pay package.
Institutional Shareholder Services (ISS), in a letter addressed to investors, stated that there were “significant concerns” about the package’s “design and size”.
According to the ISS, Mr. Cook’s salary was 1,447 times higher than that of an average Apple employee.
Apple’s chief operating officer was Mr. Cook in August 2011, only weeks before the passing of Steve Jobs.
Apple was the first company to achieve a stock market value of $3tn, before plummeting to $2.1tn in a turbulent year for the technology sector.
Covid lockdowns at factories in ChinaApple’s share price has fallen more than 20% in the past year due to supply chain delays and a global slowdown.
Forbes magazine reports that the 62-year old’s personal wealth is approximately $1.7bn. Cook has pledged to leave his entire fortune in his lifetime.