Apple Inc. is cutting Chief Executive Officer Tim Cook’s compensation by nearly 50% to $49 million (₹400 crores) in 2023, citing investor guidance and a request from Cook himself to adjust his pay.
The 62-year-old had received a compensation of $99.4 million in 2022. This included $3 million in base salary, about $83 million in stock awards and a bonus. Cook’s pay in 2022 was just a little more than his pay package in 2021 – $98.7 million, 1,447 times the median salary of an Apple employee.
Apple had also said during the filing that the decision to revise Cook’s salary had been taken after ‘balanced shareholder feedback, Apple’s exceptional performance and a recommendation from Cook’.
Apple had further said that the company also has plans to ‘position Cook’s annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years’. Cook became the CEO of Apple in 2011 and has consistently lead the company towards success. The Apple board had also praised his performance during the SEC filing.
Each year, Apple and other companies ask their shareholders to vote on named executives’ compensation packages and salaries. That list of named executives includes Cook, but also other executives, like COO Jeff Williams. Apple’s shareholders did not vote overwhelmingly in favor of Cook’s compensation, thus explaining the drop in pay for 2023.
Specifically, 64%of shareholders voted in favor of Cook’s 2022 salary. While that is a majority, it isn’t nearly as high as prior percentages.
Cook’s pay cut doesn’t mean he is underwhelming as CEO, and in fact, Apple’s board said the opposite. His target compensation for 2023 includes a $3 million base salary, a $6 million annual cash incentive, and $40 million in Apple stock awards.
The company will hold its annual meeting March 10.