Apple CEO Tim Cook will take a 40% pay cut in 2023
According to the The Cook Report, Tim Cook is making around 40% less than last year. annual proxy statement (PDF) Apple has released — and the CEO himself recommended it. According to reports, 64 percent of shareholders voted in favor of executives keeping their 2021 pay packages at the tech giant’s annual shareholder advisory meeting in 2022. It is still a majority of votes but it shows a substantial decline in approval over the previous year. As 9to5Mac Notes that 94.9 percent of shareholders who voted in the past year were in favor of compensation proposals for executives.
Apple’s Compensation Committee considered the Say on Pay voting results, as well as Tim Cook’s recommendation to “adjust his compensation in light feedback received” in deciding this year’s pay packages. Cook’s target salary for 2023 is $49 Million, a $35 million decrease from his 2022 salary. Cook’s base pay remains at $3 million. He also receives an annual cash incentive of $6 million. However his equity award value increased by $40 million from $75 million in 2022 and $20 million in 2022. He was also granted an equity award with 75 percent performance and 25% time-based vesting. This is in addition to the 50-50 that he received in 2022.
Cook, who promised to donate his fortune to charity Stock awards and bonuses will make it more likely that employees who were working a few years back will earn more than $49million this year. According to BloombergHe earned $99.4million in 2022, $15.4 million higher than his target salary. His total salary in 2021 was $98.7 millions. Critics disliked Institutional Shareholder Services, an advisor firm. urged shareholders Cook’s salary package will be voted against by those who are concerned about the size and structure of Cook’s equity awards. According to the firm, “Half” of the award is missing performance criteria. This change in Cook’s compensation is indicative of a changing attitude toward executive pay. The CEO may be setting an example to his peers. It’s not unusual for an executive at his level to suggest that their own salary be cut.