Apple CEO Tim Cook’s annual pay package will be significantly reduced by over 40% this year, following criticism from shareholders. The technology giant announced that Mr. Cook himself requested the cut. According to the company’s compensation committee, Cook will receive a total “target compensation” of $49 million for 2023. This move comes after a difficult year for Apple, with the company facing supply chain issues and a global economic slowdown, resulting in a sharp drop in their shares.
The company stated in a filing with a US financial watchdog that the compensation committee took into account shareholder feedback, Apple’s performance, and Cook’s own recommendation to adjust his compensation in light of the feedback received. Cook’s basic salary will remain unchanged at $3 million, while his bonus will be capped at $6 million. However, the biggest change will be in the way Cook is awarded shares in the company.
In 2022, Cook received $75 million worth of shares, half of which were based on the company’s performance on the stock market. This year, his stock award target has been reduced to $40 million, with three-quarters of that dependent on share performance. The target for Cook’s compensation in 2022 was $84 million, but his actual total pay for that year was $99.4 million, which included $630,600 for personal security costs and $712,500 for the use of a private jet.
Last year, a leading investor advisory group urged Apple shareholders to vote against Cook’s pay package. In a letter to investors, Institutional Shareholder Services (ISS) expressed “significant concerns” over the “design and magnitude” of the package. According to ISS, Cook’s pay was 1,447 times more than the wage of an average Apple employee. Cook became the CEO of Apple in August 2011, shortly before the death of co-founder Steve Jobs. Under Cook’s leadership, Apple became the first company to reach a stock market valuation of $3 trillion, before falling to about $2.1 trillion during a tumultuous year for the technology industry.
