This year, Apple CEO Tim Cook’s annual salary will be reduced by more than 40%. According to the technology giant, Mr Cook requested the cut in response to shareholder criticism.
The compensation committee at Apple awarded him a total “target compensation” of $49 million for 2023. Last year, the iPhone maker’s stock plummeted due to supply chain issues and a global economic slowdown.
“The Compensation Committee balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr Cook to adjust his compensation in light of the feedback received,” Apple said in a filing with a US financial watchdog.
Cook’s annual basic salary will remain at $3 million, with a bonus of up to $6 million. The most significant difference in his pay package is how he will be awarded shares in the company.
In 2022, the company granted him $75 million in stock options, half of which were contingent on how well Apple performed in the stock market. His stock award target for this year has been reduced to $40 million, with three-quarters of that contingent on share performance.
Cook’s compensation target for 2022 was $84 million, but his actual total pay for last year was $99.4 million. This included $630,600 for personal security and $712,500 for the use of a private jet.
A leading investor advisory group urged Apple shareholders last year to vote against Cook’s pay package.
Institutional Shareholder Services (ISS) expressed “significant concerns” about the package’s “design and magnitude” in a letter to investors.
According to the ISS, Cook’s salary is 1,447 times that of an average Apple employee.
Cook took over as CEO of Apple in August 2011, just weeks before co-founder Steve Jobs died.
Under Cook’s leadership, Apple was the first company to achieve a stock market valuation of $3 trillion, before plummeting to around $2.1 trillion during a turbulent year for the technology industry.
Lockdowns at Chinese factories, supply chain delays, and a global economic slowdown have all contributed to Apple’s share price falling by more than 20% in the last year.
According to Forbes magazine, the 62-year-personal old’s wealth is around $1.7 billion. Mr Cook has committed to donating his entire fortune during his lifetime.
(Adapted from BBC.com)