Apple CEO Tim Cook will take a 40% pay cut in 2023

According to The Washington Post, Tim Cook’s salary is around 40% lower than last year. annual proxy statement (PDF) Apple has released — and the CEO himself recommended it. The tech giant apparently decided to retain their 2021 pay packages during its annual shareholders advisory meeting in 2022. Only 64 percent of “Say on Pay” votes were cast in support of it. 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” to determine 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 salary is $3 million. His annual cash incentive remains the same at $6 million. However, his equity award value increased from $75 million to $40 million in 2022 to $40million this year. Additionally, his equity award now includes 75 percent performance and 25% time-based vesting. It is not 50-50 as in 2022.

Cook, who had vowed 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 $98.7million. 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. The firm stated that half of the award does not meet 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 is not unusual for an executive at his level to recommend that their pay be cut.