Apple cuts CEO Tim Cook’s pay by more than 40% to $49 million in 2023, citing investor guidance and Cook’s own request for a pay adjustment.
As part of the changes, the percentage of stock units awarded to Cook and tied to Apple’s performance will increase to 75% in 2023. In 2022, Cook received compensation of $99.4 million, including $3 million in base salary, approximately $83 million in awards in the form of shares and bonuses. That’s slightly more than in 2021, when his total compensation package was $98.7 million.
Cook’s most recent compensation was based on “balanced shareholder feedback, Apple’s exceptional performance and Mr. Cook’s endorsement,” the iPhone maker said in the filing. The company also plans to “set Mr. Cook’s annual salary target between the 80th and 90th percentiles of our main peer group for years to come,” Apple said.
Apple has faced criticism from groups such as Institutional Shareholder Services over Cook’s previous compensation package, but a majority of shareholders voted to approve it last year. ISS, a leading consulting firm, complained that Cook’s shares would continue to be acquired after retirement, and half of the rewards would not depend on performance criteria such as the company’s share price.
The target compensation of $49 million includes the same compensation of $3 million and a bonus of $6 million as in 2022, as well as a capital award of $40 million. Its capital award value in 2022 was $75 million. Cook’s actual total compensation for 2023 may fluctuate based on the performance of the company’s stock.
Cook, 62, has pledged to donate his fortune to charity.
It is rare for CEOs to recommend that their own pay be docked. Compensation packages are becoming more generous, and 2021 was a record year for executive pay, according to Bloomberg data.
But shareholders are increasingly withdrawing from such packages. According to the consulting company Mercer, in 2021 a record number of so-called.
Apple also revealed the 2022 pay for CFO Lucy Maestri, General Counsel Kate Adams, Head of Retail Deirdre O’Brien and COO Jeff Williams. All of these executives were paid about $27 million – including salary, stock and bonus – in 2022, a slight increase from the previous year.
The Cupertino, California-based tech giant has announced that its annual shareholders’ meeting will be held virtually on March 10.